Marriage Gift Tax: Weddings in India are grand, and the exchange of gifts is an important part of it. Nowadays, a huge amount of money is spent on these events. Parents and relatives give gifts worth lakhs of rupees to the bride and groom, which often include cash, vehicles, property, and other valuables.

According to the income tax rules, if you get a gift of more than Rs 50000 in a financial year in cash, property, or any other way, then it will be taxed. On the other hand, gifts on the occasion of marriage do not completely come under this purview. Let us know the tax on wedding gifts.

All gifts received by the bride and groom during the wedding are completely tax-free. This includes gold, property, cash, and all other types of things, on which no tax is levied. However, this exemption applies only to the bride and groom. If the parents receive any gift, it may come under the purview of tax. For example, if parents receive a gift of Rs 1 lakh, then tax will have to be paid on it.

No limit on gifts-
There is no limit on the value of gifts given on marriage. Any person can give a gift of any value to the bride and groom, and it is completely tax-free. However, the person giving the gift will have to tell the Income Tax Department about its source.

Is there a tax on gold received as a gift after marriage?

Gold or jewelry received by married women from their husband, brother, sister, parents, mother-in-law, or father-in-law is completely tax-free. Gifts of more than Rs 50,000 from non-relatives are generally taxable. However, any gift received on the occasion of marriage, even if it is from a non-relative, is completely tax-free. This special exemption applies only at the time of marriage.

How much gold can you keep without proof?

According to Indian law, a married woman can keep up to 500 grams of gold without any document. Whereas, without marriage, she can keep 250 grams of gold. Similarly, men can keep only 100 grams of gold without any document.

Do not take more than 2 lakh rupees in cash-

Do not take a cash gift of more than 2 lakh rupees. According to section 269ST, if a person takes an amount of 2 lakh or more in cash, then a penalty will be imposed. Therefore, if you are taking an amount of 2 lakh or more as a gift, then take it only through banking channels.

Such as: - A / C Payee cheque, or A / C Payee bank draft, or transfer to the bank through the electronic clearance system. If the payment is being received through self-check, then it will also be considered a transaction done in cash and a penalty will be imposed.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.