Do you know that the gifts you are getting are also linked to some tax rules? 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 it is worth.

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. Who has given you the gift and how much it is worth, depends on that 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 as 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 as 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 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 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 gift transactions between husband and wife because the income from gift transactions comes under the scope of income clubbing.

Property, shares, bonds, car etc. if received from close relatives then it is tax free, if received from friends or acquaintances then it is taxable.

Gifts received on marriage are completely tax free, whereas gifts received from employers are taxable.

If you receive gifts worth up to 50 thousand rupees in a year from friends or acquaintances, then it is tax free. Tax has to be paid if the value is more than 50 thousand rupees.

There is no tax liability on property received from close relatives, but tax has to be paid on selling that property.

There is no tax on property received through will, but tax has to be paid on selling this property.