Tax Rules: On which gifts you may have to pay income tax and which gifts are tax-free, know here...
Income Tax Rules on Gifts: Whether it is Diwali or Holi festival or occasions like birthdays, engagements, or weddings 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 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 as a gift, land or house, shares, jewelry, 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 taxed.
If your close relatives and close relatives give you gifts, then they are not taxed. 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 these rules 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, cars, etc. are tax-free if received from close relatives, but if received from friends or acquaintances, then tax is levied on them.
A gift received on marriage is completely tax-free, while a gift received from an 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.