Gift tax in India is the tax on property or money that one living person gives to another. Things received upon the death of another are considered separately under the inheritance tax. Numerous gifts are not subject to taxation because of exemptions are given in Indian Income tax laws.
What is the limit for giving or receiving gifts from others? It is common question arise in everyone while gifting money to others. Gift tax in India is controlled by the Gift Tax Act, which was constituted on 1st April 1958.
Taxable Conditions for an Individual/ HUF
If any rule satisfies the conditions mentioned below section by an individual or HUF is Taxable. (When an Individual/HUF Received monetary gift in cash, cheque, draft, etc.)
- The sum of money received without consideration.
- The aggregate value of that sum of money received during the Financial year exceeds Rs. 50,000/-.
In which cases gift received by an individual or HUF is not taxable?
Check the following cases for tax-free on Gift Tax. Here we are providing the table for Non-Taxable conditions for Individuals or HUF. As per Section 56(2)(vii), gift (cash, cheque, draft, etc.) received from relatives is not taxable.
|Money received from relatives
|Money(Gift) received by an HUF from its members.||Not Taxable|
|Money received on the occasion of the marriage of the individual.||Not Taxable|
|Money received under will/ by way of inheritance||Not Taxable|
|Money received in contemplation of death of the payer or donor||Not Taxable|
|Money received from a local authority as defined in section 10(20) of the Income-tax Act.||Not Taxable|
|Money received from any fund or foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in Section 10(23C).||Not Taxable|
|Money received from a trust or institution registered under section 12AA.||Not Taxable|