Tax Rules: Do you know that there are some tax rules attached to the gifts you are receiving. 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 is its value.
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 the gifts you are getting are also linked to some tax rules. Depending on who has given you the gift and the value of the gift, 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, gifts you 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. If tax liability arises after tax calculation, then you have to pay that tax.
These gifts are not taxable
If your relatives and close relations 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 of mother/father i.e. aunt, maternal uncle, paternal uncle, grandparents, grandparents of husband/wife, son or daughter and husband or wife of brother/sister are included in the list of close relatives. If they give you a gift, it does not come under the scope of tax, even if its value is more than 50 thousand.
Understand these rules well
- There is no tax on the exchange of gifts between husband and wife because the income from gift transactions comes under the purview of income clubbing.
- Property, shares, bonds, cars etc. are tax free if received from close relatives, but tax is levied on them if received from friends or acquaintances.
- Gifts received on marriage are completely tax free, while gifts received from employers come under the purview of tax.
- If gifts worth up to 50 thousand rupees are received from friends or acquaintances in a year, then they are tax free, and tax is payable if the value is more than 50 thousand rupees.
- There is no tax liability on property received from close relatives, but tax is payable on selling that property.
- There is no tax on property received through a will, but tax is payable on selling this property.
