Festive season has started. Durga Puja is cut. Diwali, Vafonta, Jagdatri Puja is coming. Due to this, both have started giving gifts to each other. But you will have to pay tax on the things given in the gift, know –
As per section 57(2) of the Income Tax Act, if gold, cash or shares are received as a gift, tax has to be paid as per the specified slab. As a rule, if a person receives a gift of more than Rs 50,000 in a financial year, then he has to pay tax. That is, if a person receives a gift of less than Rs 50,000 in a financial year, there is no risk of paying tax. Suppose, if a person receives a gift of Rs 80,000 in the financial year 2021-22, then Rs 60,000 gets added to his income. In that case he has to mention that matter while filing the income tax return. You have to pay tax.
gifts from blood relatives
However, there are some exceptions to that rule. Even if you receive a gift of more than Rs 50,000 from ‘certain relatives’, you do not have to pay tax. That list includes father and son kinship. A father can give his son or son a gift of any value to his father. Hence no tax has to be paid. Gifts are also available for gifts received from blood relatives including husband, wife, brothers and sisters. Gifts received in marriage are not taxable.
However, as per the law, if a person receives a gift of more than Rs two lakh in cash, he will be liable to a fine equal to the gift received in cash. Therefore, do not give or accept cash gifts of more than two lakh rupees.
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