In India, gifts up to Rs 50,000 annually are tax-free. Additionally, gift tax exemption relatives India applies to presents from specified relatives. In other situations, gifts are taxable. Since the Gift Tax Act of 1958 was abolished in 1998, there is no separate gift tax in India, and the Income Tax Act governs all taxes, including those on gifts.
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Gifts from specified relatives are exempted, regardless of the amount. The gift from relative exempt from Income tax in India;
Spouse
Mother
Father
Brothers
Sisters
They also include any lineal ascendant or descendant of the individual or his spouse as well as brother/sister of the spouse
However, it should be noted that even while the gift is exempted from tax in the recipient's hands, the income it generates can be subject to taxation under the Income Tax Act's clubbing of income provisions.
Are gifts in cash and kind, both taxable?All gifts, whether those in cash, gold, real estate, artwork, or any other valuable possession, are subject to taxation. The same would not be taxable, if the cash sum or value of the gift in kind is less than Rs 50,000.
Gifts that are exempt from tax:Tax exemption is available on gifts up to Rs 50,000 given in a fiscal year. But if you get gifts that are greater than this sum, the whole thing will be taxable.
If you get any property (movable or immovable) for insufficient consideration, the difference between the consideration and the stamp duty value would be regarded as a taxable gift.
Gifts from specified relatives
Gifts provided with the intention of the recipient's marriage.
Gifts provided with the donor's death in mind, as well as gifts received through a will or inheritance.
Property obtained from a local government in the terms of section 10(20) of the Income Tax Act.
Property obtained from any trust or institution mentioned in section 10(23C), fund, foundation, university, other educational institution, hospital, or medical facility.
Property acquired from a trust or organisation established under section 12AA.
I hope this answer suffices your query about the gift tax exemption relatives India. I hope this helps:)
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Gift Deed: Meaning, Registration, and Taxes Where to show gift received from relatives in ITR? Can the Gift Deed Be Revoked?Your Feedback Matters! How was this Answer?
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Which Relatives are Exemption from Gift Tax in India?
Karishma
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2023-04-25T08:34:55+00:00 2023-04-25T08:43:51+00:00Comment
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