Diwali Gift Items Under Law In India : Diwali is being celebrated with pomp across the country. Let us tell you that there is a trend of taking and giving Diwali gifts to you on this festival. You too must have received a lot of gifts and you have to give some gifts too. It is a common tradition in India to give gifts from one person to another person or relative. Anyone can give a gift or gifts to anyone. There is no restriction on this either. But what is discussed the most is what are the provisions of income tax on gift giving from person to person?
Tax on such gift
If you receive a gift from any relative, then it is not taxable. The definition of relative given in the Income Tax Act is very important. Apart from this, there are provisions of income tax regarding gifts. Certain gifts received from persons who are not in the relationship are also tax-free. First, let’s talk about normal gifts, then those gifts that you have received from non-relatives. Such gifts, whether received by one person in a whole year from one person or more than one person whose total amount does not exceed Rs. 50 thousand, then these gifts do not add to the income. If this total amount exceeds Rs.50 thousand then all this amount will be taxable.
understand like this
Suppose you have received a gift of 30 thousand rupees from a non-relative person and 35 thousand rupees from another person. These two persons are not your relatives and this amount is more than 50 thousand rupees. Therefore, this entire 65 thousand rupees will be added to your income. You have to pay tax on that. Therefore, if the gift you get in this way in the whole year is only up to 50 thousand rupees, then only it will not be added to the income. But, if it is more than 50 thousand then only this entire amount will be added to your income.
Definition of relative
Let us tell you that in the Income Tax Act, gifts received from relatives are not subject to income tax. The definition of relative in the same law is something like this. It includes husband-wife, parents, grandparents, mother-in-law, brother-in-law, sister-in-law, brother-in-law, brother-in-law, brother-in-law, brother-in-law, brother-in-law, brother-in-law, brother-in-law, maternal uncle, Aunt-Moust, Aunt-Fufa, Uncle-Aunt, Tau-Tai. Apart from this, some relationships can be yours too.
This is your family
If the gift received is an undivided family, then the gifts received by them from their members will be exempt from tax. Gifts received by inheritance or bequest are also exempt from tax. Gifts received by a person in his marriage are not taxable. Gifts received from certain specific funds, foundations, universities, charitable institutions are also exempt from the tax net.
The law will apply to such gifts
Let us tell you that the gift is in check or cash. Or in the form of any property such as real estate, jewelery or shares etc. The same rule applies to this. If you get all these assets without any consideration i.e. without payment. So the same provisions will be applicable to them as on cash gifts. The provisions of the Gift shall be applicable even if all these articles have been received by you on insufficient consideration, the provisions of the Gift shall be applicable. If you get any permanent property, real estate without any consideration, then its stamp duty value will be more than 50 thousand rupees. The entire amount of this stamp duty value will be added to your income.