New Delhi, July 10 -- Q. Back-to-back hospitalisation of my family members caused me huge financial loss during the last financial year. I approached a few charitable institutions and some of my relatives for financial help. We have received around 10 lakhs as donations in various bank accounts. Will this money be treated as our income? What declarations do I need to make and obtain for such donations?

The money received by you though mentioned as a donation is nothing but gifts. All gifts whether received in cash or in kind are tax-free in the hands of a recipient as long as the aggregate value of all the gifts received during one financial year does not exceed fifty thousand rupees.

Once the value exceeds this threshold limit, the ful...