Report Gift as Income in Your Tax Return

Report Gift as Income in Your Tax Return

Receiving gifts is always a joy, but did you know that certain gifts can be taxable?

If the total value of gifts you receive in a financial year exceeds ₹50,000, you are required to report it as income in your tax return under "Income from Other Sources." But don’t worry—there are several exceptions where gifts are fully exempt from tax.

When Are Gifts Tax-Exempt?

  • Gifts from immediate family members (such as parents, siblings, or a spouse)

  • Gifts received on the occasion of your marriage

  • Gifts received through inheritance or a will

  • If the aggregate value of all gifts received in a year is ₹50,000 or less

  • Gifts from registered charitable trusts or institutions

In these cases, while the gifts are not taxable, it's still good practice to report them as exempt income for clarity and compliance.


Steps on how to Report Gift Income:


  1. Navigate to File > Incomes > Other Incomes, then click Gift Income

  2. Enter the total value of the gifts received

    Need Help?

    Raise a ticket to get in touch with us

    • Related Articles

    • Understanding Tax Computation Report

      A tax computation report is a summary of your tax return. It is divided into four main sections: Personal details - Name, PAN, email, etc. Income tax return details - Return type, regime, filing date, acknowledgment number. Tax computation summary - ...
    • Report Presumptive Business Income

      If you're a small business owner or professional, the Presumptive Taxation Scheme offers a simplified way to file your taxes. It allows you to declare income as a fixed percentage of your turnover or gross receipts, eliminating the need to maintain ...
    • Import Trades & Report Business Income using Investment Apps

      If you're trading in Intraday or Futures & Options (F&O), it's important to know that these are treated as business income under the Income Tax Act and must be reported under the Business & Profession (B&P) category. ⚠️ Since Intraday and F&O are ...
    • Reset Income Tax Return

      Resetting a tax return means deleting the current return you’ve been working on, allowing you to start over from scratch. This can be useful if you’ve made errors or no longer wish to file that particular return. Once reset, all previously entered ...
    • Autofill your Income Tax Return

      Don’t worry if you haven’t started your Income Tax Return yet—autofill makes it easy! Just fetch your details directly from the Income Tax Department (ITD). To Get Started: Click on Start Here Select Import from ITD using Autofill Connect to your ITD ...