If the conditions given in preceding FAQ are satisfied, then prescribed movable property received (i.e. acquired) by an individual or HUF for less than its fair market value is chargeable to tax. However, in the following cases nothing will be charged to tax in respect of prescribed movable property received for less than its fair market value:
Property received from relatives (*).
Property received by a HUF from its members.
Property received on the occasion of the marriage of the individual.
Property received under will/ by way of inheritance.
Property received in contemplation of death of the donor.
Property received from a local authority as defined under section 10(20) of the Income-tax Act.
Property received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10(23C).
Property received from a trust or institution registered under section 12AA.
(*) Relative for this purpose means:
(a) Spouse of the individual;
(b) Brother or sister of the individual;
(c) Brother or sister of the spouse of the individual;
(d) Brother or sister of either of the parents of the individual;
(e) Any lineal ascendant or descendant of the individual;
(f) Any lineal ascendant or descendant of the spouse of the individual;
(g) Spouse of the persons referred to in (b) to (f).