I can help you understand what is gift tax. In India, gifts are taxable under the Income Tax Act, 1961, as "Income from Other Sources," unless exempted. Certain gifts received in India are subject to taxation, even though there aren't many exclusions. Even a small financial transaction between friends and family results in tax implications for the recipient. I have shared more details on the gift tax below.
What is the Gift Tax Meaning?
The gift tax applies when individuals receive monetary or non-monetary gifts exceeding Rs.50,000 in a financial year. Taxable Gifts- Cash, checks, or bank transfers exceeding Rs.50,000 in aggregate are taxable.
- The stamp duty value of a property received as a gift is taxable if it exceeds ₹50,000 and no consideration is paid.
- Gifts like jewelry, shares, or art are taxable if the fair market value exceeds ₹50,000.
- Gifts received from specified relatives (e.g., parents, siblings, spouse, etc.) are fully exempt from tax, irrespective of the amount.
- Gifts received on marriage, inheritance, or under a will are exempt from tax.
- Donations or gifts received from approved charitable institutions are not taxable.
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What is Gift Tax?
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2024-12-30T09:06:06+00:00 2024-12-30T09:06:07+00:00Comment
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