According to the Income Tax Act, some selected gifts can be taxed, but it depends on who has given the gift to you, and how much it costs. If the gift or gift received by you does not fall under the exempted category, then you will have to declare it in your Income Tax Return (ITR).

If the total value of gifts received by you in a single financial year exceeds Rs 50,000, then it is taxed under section 56(2) of the Income Tax Act. These gifts can be in the form of cash or any kind. However, gifts given by close relatives and family members are exempt from tax, which means that you do not have to pay any tax on gifts given by your brother, sister, parents or spouse. Will happen.

One thing to note – friends are not included in the category of relatives, so gifts received from them will have to be included in ‘Income from Other Sources’, and they will be charged in your tax slab. Tax will have to be paid on the basis of

By the way, gifts are also classified into different categories on the basis of their type. Cash, drafts or checks are treated as monetary gifts, and will attract income tax if their aggregate value exceeds Rs 50,000 in a single financial year. If the gift is given in the form of land or building, they are treated as immovable property, so they will also be taxed if their stamp duty value exceeds Rs.50,000.

However, jewellery, paintings, drawings, shares or securities and collections, etc., are treated as movable property, and they will also be subject to tax if the market value of the gifts received exceeds Rs 50,000. Although jewelery is taxed, but a gifted motorcar is not included in the purview of movable property, so no tax is payable on it.

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