Gifts received on the occasion of a wedding from relatives, friends and acquaintances are tax-free. However, if exemption is claimed on gifts received from a relative or friend well in advance, be prepared for queries from the income tax department.
Income tax rules, typically, do not consider gifts with a friendly eye. Gifts worth over Rs 50,000 are taxable, unless received from close relatives such as a parent, sibling and spouse. For gifts given by others, one has to add their monetary value under the head ‘Income from other sources’ and pay tax on the entire amount at the applicable slab rate. However, the tax department is more generous when it comes to wedding presents. Put simply, no tax has to…
Read more: https://www.moneycontrol.com/news/business/personal-finance/showered-with-gifts-at-your-wedding-heres-how-they-will-be-taxed-or-not-11938241.html
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