Taxes and Gifts: What the Law Says

Gifts from relatives are generally tax-free, but gifts from non-relatives above a threshold are taxable, and gift deeds involve stamp duty.

When gifts are taxed.

Gifts from relatives

Exempt from income tax, though defined relatives only.

Gifts above ₹50,000 in a year from non-relatives can be taxed as income.

Wedding gifts are exempt.

Gifting property requires a registered gift deed and stamp duty in many states.

A large gift

A friend gives ₹3 lakh, which the recipient must report.

Assuming all gifts are tax-free

Rules depend on who gives and how much.

Key takeaways