Community Question Bank

All gifts received, whether in cash or kind, are taxable under the Indian law. For example, if a grandmother gifts property to the granddaughter. Tax on gifts is to be paid by the person receiving it, in the year in which it is received. It is taxed under the head ‘income from other sources’. To be considered a taxable gift, the item exchanged should be:

• Without any consideration
• Of value more than INR 50, 000

However, some gifts are tax-exempt, if they qualify the following grounds:

• They have been received from specific relatives, i.e. parents, siblings, spouse
• Gift received in marriage, from relatives or in a will, regardless of value
• Gift received in contemplation of death of the payer
• Received from a local authority, fund, university, or medical institution