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?
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Gifts from immediate family members (such as parents, siblings, or a spouse)
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Gifts received on the occasion of your marriage
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Gifts received through inheritance or a will
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If the aggregate value of all gifts received in a year is ₹50,000 or less
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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:
- Navigate to File > Incomes > Other Incomes, then click Gift Income
- Enter the total value of the gifts received
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