Income Tax Rules on Gifts: Do you know that there are some tax rules attached to the gifts you are getting. Which gift will come under the purview of tax and which will not, depends on who you have received the gift from and how much it is worth.
Income Tax Rules on Gifts: Whether it is Diwali or Holi festival or occasions like birthday, engagement, wedding at home, the process of giving and taking gifts continues. But do you know that there are some tax rules attached to the gifts you are getting. Who has given you the gift and how much it is worth, depends on that which gift will come under the purview of tax and which will remain out of the purview. Most people are not aware of the income tax rules applicable on gifts. Let us tell you.
These gifts are counted in taxable income
If your friend or acquaintance or any person with whom you have no blood relation gives you gifts, then their gifts come under the purview of tax. However, not every gift is taxable. If your friend or acquaintance gives you more than 50 thousand rupees in cash as a gift, land or house, shares, jewellery, painting, statue etc., whose value is more than 50 thousand rupees, then it is counted in taxable income. It is necessary to give information about this in the income tax return. After tax calculation, if tax liability arises, then you have to pay that tax.
These gifts are not taxable
If your close relatives and close relatives give you gifts, then they are not taxable. Husband-wife, brother-sister, brother or sister of husband/wife i.e. sister-in-law, sister-in-law, brother-in-law, brother-in-law, brother-in-law, mother/father’s brother or sister i.e. aunt, maternal uncle, paternal uncle, grandparents, grandparents of husband/wife, son or daughter and husband or wife of brother/sister are kept in the list of close relatives. If they give you a gift, it does not come under the purview of tax. Even if its value is more than 50 thousand.
Understand this rule well
- There is no tax on gift exchange between husband and wife because the income from gift exchange comes under the purview of income clubbing.
- Property, shares, bonds, car etc. are tax free if received from close relatives, but if received from friends or acquaintances, then tax is levied on them.
- Gift received on marriage is completely tax free, while gift received from employer comes under the purview of tax.
- If you receive a gift of up to 50 thousand rupees in a year from friends or acquaintances, then it is kept tax free, if the value is more than 50 thousand, then tax has to be paid.
- There is no tax liability on property inherited from close relatives, but tax has to be paid on selling that property.
- There is no tax on property inherited through a will, but tax has to be paid on selling this property.
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