Hey friend,
How many times have you given or received a gift from your friends and family without knowing about gift tax in India. There are no rules, regulations on the practice of giving gifts yet there are certain tax concessions made on gifts. Take a look at my answer to know what gift will get you taxed.
How much is gift tax in India ?
As per Income Tax Act, 1961, any gift that is received by an Indian citizen amounts to more than Rs. 50,000 is taxable under the law. Usually, gift tax liability is calculated according to the
income tax slab rate of the person giving the gift. eg. People in the highest income tax bracket will have to pay 30% tax on gifts received.
The receiver has to pay the gift tax, not the donee. Further, Indian income tax law states that any amount of money or property which is received without consideration or for inadequate consideration is taxable. The prescribed limit has been set at Rs 50,000.
This tax falls under "income from other sources”. Now that you know how much is the gift tax in India. I will share a tip to avoid paying gift tax in India. The easiest option is to stay within the limit set in the Gift Tax Act. You can also give people handmade gifts and space them throughout the financial year.
This is all from my end on gift tax in India. Remember, to check tax implications on other items as well.
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Read more :
What Is Proportional Tax?
What is TCS in income tax?
What is withholding tax?
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How much is gift tax in India ?
Farah
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3 Year
2022-04-05T17:48:35+00:00 2022-04-11T12:29:22+00:00Comment
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