New Delhi, Aug. 21 -- For several individuals in the nation, receiving financial assistance and gifts from parents is a common form of support. In such cases, if your parents transferred a large amount, say Rs.10 lakh, to your bank account digitally, the logical question that arises is: What is your tax liability on this amount as you go ahead with filing your taxes in FY 2024-25?

To put it simply, under the Income Tax Act, 1961, Section 56(2)(x) covers such cases; it states that such gifts from specified relatives are completely exempt from tax, irrespective of the amount involved.

CA (Dr.) Suresh Surana, a Mumbai-based Chartered Accountant, says, "Section 56(2)(x) provides that if an individual receives any sum of money without consid...