On occasions like birthdays, marriages, and engagements, when someone gives us a gift, we feel very happy, but perhaps you may not know that some gifts also come under the purview of tax. However, it depends on who has given the gift and how expensive it is. If you are taking an expensive gift from a friend, then you may have to pay tax on it. Here know what are the rules regarding tax on gifts.

Gifts of these people may be taxed.
If your friend or acquaintance or any such person gives you a gift, with whom you have no blood relation, then their gifts come under the purview of tax.

Tax will be levied on crossing this limit.
Not every gift is taxed. If your friend or acquaintance gives you more than 50 thousand cash as a gift, gifts you land or house, shares, jewelry, painting, statue, etc., whose price 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.

There is no tax on their gifts.
If your close relatives and relatives give gifts, then there is no tax on them. Husband-wife, brother-sister, brother or sister of husband/wife, brother or sister 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 gifts, then it does not come under the purview of tax. Even if their value is more than 50 thousand.

Also, understand these rules related to tax.
There is no tax on gift transactions 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 blood relatives, but if received from friends or acquaintances, then tax is levied on them.

Tax rules on property received from family

There is no tax liability on property received from blood relatives, but tax has to be paid on selling that property. There is no tax on property received through a will, but tax has to be paid on selling this property.

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