Tax on Gifts in India

Let's discuss about kind of Gifts covered

• Monetary Gifts ( monetary gift may be received in cash, cheque, draft, etc)

Gifts up to Rs 50,000 in a financial year are exempt from tax. However gifts higher than this amount, the entire gift becomes taxable.

• Immovable property without consideration

If Stamp Duty Value exceeds Rs. 50,000 then, the stamp duty value of such property will be taxable.

• Immovable property for inadequate consideration

If part consideration is being paid and the difference between the part payment made and the Stamp Duty Value is more than Rs. 50,000/-, such difference would be taxable.

• Movable Property without consideration (jewellery, shares, drawings etc.)

Property other than immovable property without consideration, the aggregate Fair Market Value (FMV) of which exceeds Rs. 50,000, then FMV will be taxable.

• Movable Property with inadequate consideration (jewellery, shares, drawings etc. )

If part consideration is being paid and the difference between the part payment made and the FMV is more than Rs. 50,000/-, such difference would be taxable.

Let's talk about Gift Tax Exemptions

• Sum of money or any property received from any relative

Relative – spouse, brother and sister of self and spouse, brother or sister of parents or parents in law, any lineal ascendant or descendant of self or spouse, spouse of any of the relatives mentioned here.

• On the occasion of Marriage of the Individual

Gifts received by an individual on his own marriage are fully exempted from the levy of Gift Tax.

• Under a will or by way of inheritance

Any amount received under a will or by way of inheritance or in contemplation of death of the payer is fully exempted.

• Property received in contemplation of death of the donor.

• Property received from a local authority

• Property received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10(23C).

• Trust created or established solely for the benefit of relative of the Individual

• Any charitable or religious trust registered under section 12A or section 12AA