Home NATION No Tax on Gifts in the Form of Cash: All You Need...

No Tax on Gifts in the Form of Cash: All You Need to Know

No Tax on Gifts in Cash
No Tax on Gifts in Cash

Bangalore: Gifts are special things to surprise your loved ones. Anything from a small pen to the extremely costly diamond can be given as a gift. Gifts are a symbol of love. The perspective of the term gift vary from middle class people to the rich ones. But after the digital India has born, everyone thinks for a minute before gifting. One question that arises in everyone’s mind is, “Are these gifts taxable?” especially when the gift is in the form of “Cash”.

Now let’s make a check on how much gift is tax free in India:


As per the Income Tax Act, 1961, in India, from 01.04.2006, if the value of the gifts received are more than Rs. 50,000 a year, then such amounts are taxed as income in the hands of the receiver. Previously the limit was Rs. 25000 (from 01.09.2004 to 31.03.2006). These gifts cannot only be cash but also jewelries, drawings, paintings, sculptures or any work of art exceeding Rs.50000, movable and immovable property, shares etc. This Income tax rule will not work if a person has received gifts from his/her relative. That doesn’t mean that one can simply escape from paying tax by saying a costly gift has been received from the relatives. In order to avoid this happening, the income tax rules in India, specify a list of relatives from whom when gifts are received are not taxable. These include:


ALSO READ:  Why is FATF Scaring Pakistan these Days? Know the Details

Your and your spouse’s brothers and sisters

Brothers and sisters of your parents

Your lineal descendants (including spouses)

Lineal descendants (including spouses) of your spouse

There are some more exceptions apart from the relatives, which include:


Gift received on the occasion of marriage of the individual

This point make clear that if any gifts that are received at marriage, are not liable to be taxed. So any gifts that are presented on wedding are not questionable by Income Tax Department but be sure that the date mentioned in the gift deed is the marriage date or at least any date near to the wedding.


ALSO READ:  Maharashtra: Shiv Sena wipes out Political Differences with BJP, Decides to Ally with BJP for the General Election 2019; Things to Know

Gift received under a will or inheritance

There is no tax implications, if any gifts come to a person by the way of will or as a result of inheritance. But if the income is generated by the way of rent from the inherited house, then it is taxable.


Gift received due to the death of the payer

Similar to the gifts received on marriages, any cash or things received on any death events is not taxable.


ALSO READ:  Jodhpur Court Pronounced Self Styled Godman, Asaram, Convicted, Life Imprisonment Awarded

However, if any gifts are received as amounts on occasions apart from the above mentioned criteria, then the whole amount is taxable. The gift value has to be reported under income from other sources along with the total income that comes under the tax slab rates applicable in that financial year. The cash or cheque amount, stamp duty value of property and estimated value of other assets will be chargeable as income. And also remember to get the documentation done when there is an exchange of big gifts and also note the occasion on the document. It would be easier to convince an assessing officer at the time of tax scrutiny if the written proofs are ready.


  1. This blog is definitely rather handy since I’m at the moment creating an internet floral website – although I am only starting out therefore it’s really fairly small, nothing like this site. Can link to a few of the posts here as they are quite. Thanks much. Zoey Olsen

  2. We’re a gaggle of volunteers and opening a new scheme in our community. Your web site provided us with useful info to work on. You have performed an impressive process and our entire community shall be grateful to you.

  3. I absolutely love your blog and find nearly all of your post’s to be what precisely I’m looking for. Does one offer guest writers to write content for yourself? I wouldn’t mind writing a post or elaborating on some of the subjects you write in relation to here. Again, awesome website!

  4. Nice post. I was checking constantly this blog and
    I’m impressed! Very useful info specifically the last part 🙂 I
    care for such info a lot. I was looking for this certain info for a
    long time. Thank you and best of luck.

  5. I found your blog through google and I must say, this is probably one of the best well prepared articles I have come across in a long time. I have bookmarked your site for more posts.

  6. The post is absolutely fantastic! Lots of great info and inspiration, both of which we all need! Also like to admire the time and effort you put into your website and detailed info you offer! I will bookmark your website!

  7. I had fun reading this post. I want to see more on this subject.. Gives Thanks for writing this nice article.. Anyway, I’m going to subscribe to your rss and I wish you write great articles again soon.

  8. Great write-up, I am a big believer in placing comments on sites to inform the blog writers know that they’ve added something advantageous to the world wide web!

  9. Im impressed. I dont think Ive met anyone who knows as much about this subject as you do. Youre truly well informed and very intelligent. You wrote something that people could understand and made the subject intriguing for everyone. Really, great blog youve got here.

  10. Your idea is outstanding; the issue is something that not enough persons are speaking intelligently about. I’m very happy that I stumbled throughout this in my seek for one thing regarding this.

  11. My coder is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am nervous about switching to another platform. I have heard great things about blogengine.net. Is there a way I can import all my wordpress posts into it? Any help would be really appreciated!


Please enter your comment!
Please enter your name here