If the following conditions are satisfied then value prescribed for movable property (*) received by an individual or HUF will be charged to tax:
Prescribed movable property is received without consideration (i.e., received as gift).
The aggregate fair market value of such property received by the taxpayer during the year exceeds Rs. 50,000
In above case, the fair market value of the prescribed movable property will be treated as income of the receiver.
Prescribed movable property means shares/securities, jewellery, archaeological collections, drawings, paintings, sculptures or any work of art and bullion, being capital asset of the taxpayer.
Considering the above definition, nothing will be charged to tax in respect of gift of any item being a movable property other than covered in the above definition, e.g., Nothing will be charged to tax in respect of a television set received as gift, because a television set is not covered in the definition of prescribed movable property.
Refer next FAQ for situations in which prescribed movable property received without consideration by an individual or HUF, i.e.,received as gift is not charged to tax.