No gift tax is to be payable on any gift received on or after 01.10.1998 under Indian Gift Tax Act. Any gift received on or after 01.10.1998 shall be taxable under Indian Income Tax Act subject to certain exemptions.

GIFTS TAXABLE AS INCOME OF RECIPIENT INDIVIDUALS/HUF IN CERTAIN CASES:

Following gifts shall be taxable as income in hands of individuals and HUF:-

  1. Any cash gift/sum of money received without consideration, exceeding Rs.50000/= in aggregate during any financial year.
  2. Any immovable property received like land, building or both without consideration, the stamp duty value of which exceeds Rs.50000/=. In this case, the taxable value will be the stamp duty value of such property.
  3. Any movable property like shares and securities, jewellery, drawings, paintings, archaeological collections or bullion, received without consideration, the aggregate fair market value of which exceeds Rs.50000/=. The taxable amount will be their aggregate fair market value.

Note:- With effect from 01.04.17, any sum of money without consideration i.e. gift, exceeding Rs.50000/= in aggregate, received by any person from any person shall form part of taxable income of recipient.

EXEMPTED GIFTS

In the following cases the gift received by individual/HUF shall not be taxable:-

  1. Money or property received by an individual from a relative. Relative means:-

(A) In case of an individual:-

    • Spouse
    • Brother or Sister
    • Brother or sister of spouse
    • Brother or sister of either of the parents
    • Any lineal ascendant or descendent
    • Any lineal ascendant or descendent of the spouse
    • Spouse of any person as mentioned above

(B) In case of HUF, any member thereof.

  1. Money or property received by an individual  on occasion of his marriage.
  2. Money or property received from any local authority
  3. Money or property received in contemplation of death of the payer
  4. Money or property received by an individual/HUF under a will or by way of inheritance etc.

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