India’s apex body on direct taxes, the Central Board of Direct Taxes (CBDT), has implemented a tax on gifts in kind worth over Rs.50,000 beginning October 1, 2009. Gifts such as diamond jewellery, cars and real estate among others will attract this income tax, as reported in a leading media. A statement by CBDT in the media states, ‘any person who receives a gift of any such property on or after receiver of any property is required to pay the income tax as applicable on the gift value and disclose the taxable value of such property in the return of income for the assessment year 2010-11 and subsequent years’. It also informs that the tax is not applicable on gifts in kind given to relatives on occasions of marriage, under will or by way of inheritance, in contemplation of death of donor, from any local authority, or any fund or trust, the media reports. %% The new income tax imposition is part of the Union Budget of India announced for the year 2009-10. Previously income tax was levied only on gifting in cash, beginning in 2004 with cash gifts over Rs. 25,000, with the limit being increased in 2006 to over Rs.50,000.