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Crowdfunded medical aid: What's taxable?
Mint Kolkata
|June 02, 2025
My father suffered a brain stroke in July and was hospitalized, followed by a month in the ICU.
After stabilizing, he spent another four-and-a-half months at a stroke rehab centre. Since the treatment costs were high and insurance cover was exhausted, we turned to crowdfunding. My uncle gave ₹5 lakh to my mother, maternal grandmother ₹5 lakh, and ₹1 lakh from my aunt (my mother's sister-in-law). I understand these are exempt under Section 56(2) of the Income Tax Act. In addition, we got ₹3,55,519 from friends and well-wishers. Would this fall under 'Income from Other Sources'? All funds were used for treatment, and we're currently living paycheck to paycheck.
—Navodit Sudhir
Any amount received without consideration from a relative would not be taxable and is specifically exempt under Section 56(2)(x) of the Income Tax Act, 1961.
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