By Admin 
Gift Tax Rules in India 2025: In India, there is a custom of giving and receiving gifts on happy occasions or on some special occasions. Often people give gifts to their parents, children and friends, but do you know which law applies to gifts under the Income Tax Act?
Under the Income Tax Act, gifts given to close relatives are completely tax free in some circumstances. At the same time, tax is charged on giving gifts worth more than Rs 50 thousand to non-relatives. Also, gifts received through marriage, will or inheritance have been kept tax free.
To whom is there no tax on gift giving?
According to the Income Tax Department, if you give any kind of gift to your close relative, it is completely tax free. The Income Tax Department believes that close relatives include your parents, children, spouse, siblings, in-laws and their spouses. If you have the details of all the money earned by you, then you can give any gift to your close relatives.
For example, if you give money to buy new jewelery for your mother or a new car for your father, it will be completely tax free. You can give gifts of any huge amount to your close relatives. There will be no interference in this from the Income Tax Department.
When is tax exemption available on gifts?
Often this question comes in people’s mind that, is there tax to be paid on every gift? According to the Income Tax Department, the answer is no. Gifts received on some occasions are completely tax free, no matter their value. For example, gifts received at weddings are not taxable. If someone gives you gift, cash or property on marriage, it is not taxable. Similarly, there is no tax on things received through will or inheritance. Apart from these, if you receive any gift above Rs 50,000 from non-relatives, you will have to pay tax on it to the government under other sources of income in your ITR.
Along with this, gifts received on birthday, any special occasion, home puja etc. come under the tax slab. You will have to pay tax on these. However, the price of the gift should be more than Rs 50 thousand.
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