Tax Free Gifts: What tax will have to be paid if a relative sends Rs 4 lakh from abroad? Know the rules and regulations of Income Tax Department

Tax Free Gifts: If any of your relatives sends you money from abroad, will that money be taxed or not? Such questions often become a cause of concern for people. Today we will talk about whether a relative living abroad sends Rs 4 lakh, will there be any tax on it or not. Let us know what is the answer according to income tax rules.

Will there be tax on money coming from abroad?

Under the Income Tax Act, any money received from relatives, no matter how big the amount is, is completely tax free. This means that any friend or family member living abroad can send Rs 4 lakh or more to India and there will be no tax on it. This exemption is part of the provisions of the Income Tax Department to support genuine family transfers and create transparency in financial transactions.

Who can be relatives?

Relatives include your spouse, siblings and their spouses, your parents’ siblings, descendants such as children and grandchildren, and even your spouse’s ancestors. Apart from these names, tax exemption cannot be given on money received from anyone. Apart from this, only amount up to ₹ 50000 can be demanded from non-relatives, the amount above this is considered as income from other sources. It is taxable as per income slab.

money received from marriage or will

Along with this, let us tell you that money received on the occasion of marriage or under a will, in which the sender has any relation to you, is completely tax free. Although money received from relatives is tax free, it is very important to have proper documents for that also. This includes gift deeds, bank statements and correspondence, which prove that the amount was received as a gift.

Along with this, let us tell you that not every kind of money received from abroad is tax free. If the amount received is in return for freelancing work or business transactions, then it is considered income. Along with this, tax is also imposed on this amount. Along with this, salary, professional fees or investment profits received from abroad are considered taxable income and must be declared in the income tax return.