Gifts on Gifts: Tax will be levied on giving such expensive gifts to wife, sibling or friend, check the limit immediately – ..

Income tax rules on gifts: We all exchange gifts. Birthday, engagement, wedding, mundan etc. are many such occasions where we give gifts to our friends, close ones and relatives. But sometimes you have to pay tax on gifts also. There are some tax related rules in case of gift giving, about which people are not aware. This rule depends on the value of the gift and your relationship with the giver. Let us tell you about it.

There is no tax on giving gifts to them

If your relatives and close relatives give you a gift then there is no tax on it, but if any of your friends gives you a gift then it comes under the ambit of tax. Husband-wife, brother-sister, husband/wife’s brother or sister i.e. sister-in-law, sister-in-law, brother-in-law, mother’s/father’s brother-in-law i.e. aunt, uncle, aunt, uncle, grandparents, husband/wife’s wife’s grandparents , son or daughter and brother/sister’s spouse are included in the list of relatives. If they give you any gift then it does not come under the purview of tax.

These gifts are counted as taxable income

Your friends and acquaintances are not your relatives, you are not related to them by blood, so their gifts are taxable. However, not every gift is taxable. If your friends or acquaintances give you more than Rs 50,000 in cash as gifts, or gift land or house, shares, jewellery, paintings, statues, etc., which are worth more than Rs 50,000, then it will be included in taxable income. Is counted. Is. It is important to give this information in the income tax return. If tax liability arises after tax calculation, then you will have to pay that tax. At the same time, if the gift received from relatives is more than Rs 50 thousand, it is still considered tax free.

Understand these rules carefully

• There is no tax on gift transactions between spouses as the income from gift transactions comes under the ambit of income clubbing.
• If properties, shares, bonds, vehicles etc. are received from relatives then they are tax free, if received from friends or acquaintances they are taxable.
• Gifts received on marriage are completely tax free, whereas gifts received from the employer come under the ambit of tax.
• If a gift of up to Rs 50 thousand is received from friends or acquaintances in a year, then it is kept tax free, if the value is more than Rs 50 thousand then tax has to be paid.
• There is no tax liability on property received from close relatives, but tax has to be paid on the sale of that property.
• There is no tax on the property received in the will, but tax has to be paid on selling this property.