Gifts worth more than ₹50,000 are taxable: But gifts received from blood relations are not taxable, know the rules regarding this from experts

Gifts worth more than ₹50,000 are taxable: But gifts received from blood relations are not taxable, know the rules regarding this from experts

The last date for filing Income Tax Return (ITR) without fine for the financial year 2023-24 is 31st July. While filing it, it is important to keep many things in mind. One of these is the goods and cash received as gifts. While filing ITR, information about gifts received on Diwali, birthday, anniversary or any other occasion also has to be given. In such a situation, you should take special care of this while filing ITR. If you do not do this, then you may get a notice from the Income Tax Department. Chartered Accountant (CA) Anand Jain (Indore) is telling about the tax levied on your gift. Gifts are considered as income from other sources Under the rules of income tax, if you have received gifts worth more than Rs 50 thousand in any one financial year, then you will have to pay tax on it. Gifts received on Diwali or any other occasion are considered as income from other sources. It is added to your total income (gross income). That is why you have to give information about it while filing Income Tax Return (ITR). You have to pay tax on it according to your tax slab. How is tax levied on gifts? Under Section 56(2)(x) of the Income Tax Act, 1961, tax liability is created on gifts received by the taxpayer. Gifts that come under the tax purview include these things: Gifts received from relatives are not taxable If you get gifts from your family members with whom you have a blood relation, then you do not have to pay any tax on it. You can take or give gifts of any value from your family members. It is not taxable. Gifts that come under this purview of exemption are as follows: Gifts received at a wedding are completely tax free All the gifts you receive at your wedding are completely tax free. However, you have to give information about these gifts while filing ITR. Apart from this, you will have to provide proof of marriage such as wedding card and wedding photos. Gifts received from the employer are also taxable. Gifts up to Rs 5,000 received from the employer in a financial year are tax free, but if the value of the gift is more than Rs 5,000, then the additional amount should be deducted from your salary. Do not accept cash gifts of more than Rs 2 lakh. According to section 269ST, if a person receives an amount of Rs 2 lakh or more in cash, then a penalty will be imposed on that person. That is, in this section, the penalty will be imposed on the person receiving the amount in cash and not on the person paying the amount. Therefore, if you are receiving an amount of Rs 2 lakh or more as a gift, then take it only through banking channels, such as: – A / C Payee cheque, or A / C Payee bank draft, or transfer to the bank through electronic clearance system. If the payment is being received through self cheque, then it will also be considered as a transaction done in cash and a penalty will be imposed.

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