The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has said that Rs. No tax applicable on gifts up to 20 lakhs. The ITAT termed this judgment as historic and said that the Indian tax law has a provision of exemption for taxpayers on gifts received from relatives. Under the Income Tax Act, any relative from Rs. Cash gifts above 50 thousand are classified under income from other sources category. On which tax is deducted according to the fixed rate of income tax. However, in many cases, gift, marriage or inherited property from a personal relative is exempt from tax. Under section 56 (2) (x) of the Income Tax Act, gift to a brother is exempt from tax. The Income Tax Appellate Tribunal has declared a cash gift of up to 20 lakhs received from abroad as tax free while giving a verdict in a tax exemption case against a person named Salam. Salam received a cash gift from his brother, which was taxed. Challenging this, the Income Tax Commissioner has justified this decision by saying that the taxpayer has failed to prove that Salam received the amount from his brother. Later he appealed to ITAT. In which he presented evidence that his brother had given him rupees as a gift while living in Dubai. His brother has been living in Dubai for the past 25 years, where he runs a business. During the appeal, the petitioner said that his brother had transferred this amount through three checks to Bank of Baroda, ICICI Bank. In which he also presented his brother’s bank statement, passport and investor class visa. This gift was given to him on August 26, 2022. ITAT member Prashant Maharshi decided based on all the evidence that Salam received Rs. 20 lakhs is non-taxable income.