When the gifts are not taxable?
When the gifts are not taxable?
Jeeba Jun. 27, 2018
Tax implication on gifts is stated in section of 56(2) of the income tax act. As per the act, If any person receives gifts in cash, kind or in any other form, he is liable to pay tax.
However, there are some circumstances where tax shall not be attracted. The followings are the exception to tax on the gift received.
1. Gifts that are received from the relatives are exempt from tax.
2. Gifts on the marriage of individual
3. Gift received for the value of less than 50000.
4. Gifts received under a Will or by way of Inheritance or in contemplation of death of the payer
5. Gifts received from any Local Authority as defined in Section 10(20) is also exempt from tax.
