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News India Live, Digital Desk: Gift Tax in India: On Teej-festivals or special occasions, we often give money or valuables to our children and family to express love. But do you know that your loving gift can come in the eyes of the Income Tax Department? Income tax rules are so entangled about giving and taking gifts that even a small mistake can send you a tax notice.
Especially the question bothers many people whether there is any difference between giving gifts to the daughter and giving gift to granddaughter or granddaughter? Let’s understand this whole puzzle in easy language today.
What does income tax rule say?
First of all it is important to know that every gift is not taxed. There is a simple rule of income tax:
- Laxman Rekha of Rs 50,000: If you get gifts worth more than Rs 50,000 from such people in a financial year (1 April to 31 March), which is not close to you, then the entire amount will be counted in your income and will be taxed. For example, if a friend gave you Rs 30,000 and the other Rs 25,000, the total amount was Rs 55,000. Now you will have to pay tax according to your tax slab at these entire 55,000 rupees.
Who are the relatives who do not get tax on the gift?
Now come on the most important question. The Income Tax Act has made a list of certain relatives. If you get any gift from these relatives, no matter how big the amount it is (even though 50 lakh or 1 crore), on it No tax It seems This list includes:
- Spinner
- Brother or sister
- Your parents and your spouse’s parents (mother-in-law)
- Your straightforward descendants and Lineal Ascendants
So what is the rule in the case of daughter and granddaughter?
Most people get confused here. According to the rules of income tax, “direct descendant” The category of your children (son/daughter), grandson and grandson, all come.
This simply means that You give a gift to your daughter or to your granddaughter/granddaughter, it is completely tax-free in both the appears. The one who gets a gift will not have to pay any tax on this amount, no matter how big it is. In the eyes of the law, both daughter and granddaughter/granddaughter are placed in the same category.
Wedding gift always tax-free
Another interesting rule is related to marriage. Any gift that a person receives on the occasion of his marriage, whether he meets a friend, meets a relative or someone else, is completely tax-free. No limit of Rs 50,000 also applies to this.
So next time you give someone a gift with love, then keep these rules in mind so that your love does not become a tax burden on anyone.