Income Tax on Gifts

Gifts received from specified relatives are exempt from Income Tax, and there is no upper limit also.


What is the current law on gifts tax?
Any gift received in cash or kind exceeding Rs.50,000 or purchase of movable or immovable property for inadequate payment is taxed in the hands of recipient as "income from other sources."

Who is a relative in the eyes of the law?

A relative can be any of the following:
1) Spouse of the individual
2) Brother or sister of the individual, spouse or of either parent
3) Lineal ascendants or descendants of individual or of spouse
4) Spouse of person referred to in scenario 2 and 3 above

For more details visit:
http://www.incometaxreturnindia.in/Income_Tax_on_gifts.htm