Income Tax Saving: Indian culture has a tradition of giving gifts to relatives and friends. But the gifts you get are also subject to income tax in India. However, the government has also made a provision for tax exemption on the gifts received by the taxpayer through a condition. It is a condition that if the taxpayer has received a gift from friends or relatives on his wedding, then he will not have to pay income tax, but these gifts should not be more than Rs 50,000.
If the gift received by the taxpayer is more than Rs 50,000, then it will come under the income tax. Apart from this, there is a condition that the gift should be received on the date of marriage or the date around it, not after six-six months.
How do you think about gift tax?
Under section 56 (2) (x) of the Income Tax Act, 1961, the tax payable on the gifts received by the taxpayer is made. These are among the gifts that come under the tax net-
- More than 50000 rupees money received in check or cash
- Any immovable property like land, building etc. whose stamp duty is more than Rs 50000
- Jewelery, shares, paintings or other expensive items worth more than Rs 50000
- Any property worth more than 50000 rupees other than immovable property
Do these 5 important tasks before the end of the financial year, otherwise your tax liability will increase
These gifts are beyond the limit of 50,000
There is also a provision in the Income Tax Act that tax will not be payable on gifts received from certain people or relatives. Then even if those gifts are more than 50000 rupees. The gifts that come under this exemption range are as follows-
- Gift from husband or wife
- Gift from brother or sister
- Gift received from husband or wife’s brother or sister
- Gift received from parents’ brother or sister
- Gift or property received in inheritance or will
- Gift received from any immediate ancestor or descendant of the spouse
- Gift from any member in case of Hindu undivided family
- Gifts received from local authorities such as Panchayat, Municipality, Municipal Committee and District Board, Cantonment Board
- Gift received from any Fund / Foundation / University or other Educational Institution, Hospital or other Medical Institution, Trust or Institution mentioned in Section 10 (23C)
- Gift received from a charitable or religious trust registered under section 12A or 12AA