Gifts received at the time of marriage do not attract any tax, but gifts received on special occasions like birthdays, anniversaries etc. attract income tax. Apart from this, there is no tax on inherited gifts, gifts received in will.
The festival of Diwali has just arrived, in which you must have received many luxury gifts. If you have not yet thought of sharing the details of these gifts in your income tax return, then you should be alert soon. Because the Income Tax Department has started charging tax on gifts as well. If even after this you do not give the information of gifts in the income tax return and do not pay the tax on the gift. So you can get a notice from the Income Tax Department. After which your difficulty will increase a lot. Let us know, on which gifts income tax has to be paid.
Gifts are Income of Other Source – According to the Income Tax Department, gifts received through relatives, family or friends come under other sources of income. Which are added to your annual income. Therefore, it is necessary to provide this information while filing income tax return. On the other hand, you have to pay tax according to the tax slab.
No tax on gifts less than Rs 50,000 – Gifts received from relatives and friends whose value is less than Rs 50,000, no tax is to be paid on such gifts. But income tax has to be paid on gifts worth more than Rs 50,000. But as soon as the value of the gift exceeds Rs 50,000, tax is levied on the entire amount of the gift. For example, if the value of the gift is 51 thousand then tax will have to be paid on the entire amount. It will not happen that you get taxed on only 1 thousand rupees above 50 thousand.
No tax is levied on gifts received in blood relation – Under Section 56 of the Income Tax Act, blood relations such as husband, wife, brother, sister, brother-in-law of husband and wife i.e. brother-in-law and sister-in-law, parents’ siblings (uncle Income tax is not payable on any gift given by Tau or Bua). On the other hand, gifts received from friends or office whose value is more than 50 thousand rupees will have to pay income tax.
All gifts received in a financial year are taxed – If you are thinking that the value of only one gift is less than 50 thousand rupees, then you will not have to pay income tax . So you are thinking completely wrong. Because according to the Income Tax Department, the value of the total gift received in the financial year is more than 50 thousand rupees. So you have to pay income tax. For example, let us understand that you got a gift of 50 thousand and the other gift is of 40 thousand rupees. So in such a situation, you will have to pay tax on the entire gift of 90 thousand rupees.
Tax exemption is also available on these gifts – There is no tax of any kind on gifts received at the time of marriage, but gifts received on special occasions like birthdays, anniversaries etc. attract income tax. Apart from this, there is no tax on inherited gifts, gifts received in will. Apart from this, there is no tax on the gift received on the death of the person giving it.
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