FAQs
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Are monetary gifts received by an individual or Hindu Undivided Family (HUF) taxable?

If the following conditions are satisfied then any sum of money received (i.e, monetary gift may be received in cash, cheque, draft, etc.) by an individual/ HUF will be charged to tax (*):

  • Sum of money received without consideration.
  • The aggregate value of such sum of money received during the year exceeds Rs. 50,000.

(*) Refer next FAQ for situations in which sum of money received by an individual or HUF is not charged to tax, i.e., monetary gift is not charged to tax. ​

Are there any cases in which sum of money received without consideration, i.e., monetary gift received by an individual or HUF is not charged to tax?

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If the conditions given in preceding FAQ are satisfied then sum of money received without consideration (i.e., monetary gift) by an individual or HUF will be charged to tax. However, in the following cases monetary gift will not be charged to tax.

  • Money received from relatives.
  • Money received by a HUF from its members.
  • Money received on the occasion of the marriage of the individual.
  • Money received under will/ by way of inheritance.
  • Money received in contemplation of death of the payer or donor.
  • Money received from a local authority as defined under section 10(20) of the Income-tax Act.
  • Money received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in Section 10(23C).
  • Money received from a trust or institution registered under section 12AA.
  • Gift received from relatives are exempt from tax. Who will be considered as relative for the purpose of claiming such exemption. section 12AA.

Gift received from relatives are exempt from tax. Who will be considered as relative for the purpose of claiming such exemption?
Following persons would be considered as relative ​

(a) Spouse of the individual;

(b) Brother or sister of the individual;

(c) Brother or sister of the spouse of the individual;

(d) Brother or sister of either of the parents of the individual;

(e) Any lineal ascendant or descendent of the individual;

(f) Any lineal ascendant or descendent of the spouse of the individual;

(g) Spouse of the persons referred to in (b) to (f).​

Apart from marriage are there any other occasions in which monetary gift received by an individual will not be charged to tax?

Gift received only on the occasion of marriage of the individual is not charged to tax. Apart from marriage there is no other occasion in which gift received by an individual is not charged to tax. Hence, gift received on occasions like birthday, anniversary, etc. will be charged to tax.​​

Are monetary gifts received from friends liable to tax?

Gifts received from relatives are not charged to tax.

(g) Spouse of the persons referred to in (b) to (f).

Friend is not a relative as defined in the list and hence, gift received from friends will be charged to tax (if other criteria of taxing gift are satisfied).​

Are monetary gifts received from abroad liable to tax?

If the aggregate value of monetary gift received during the year by an individual or HUF exceeds Rs. 50,000 and the gifts are not covered under the exceptions prescribed in the preceding FAQ, then gifts whether received from India or abroad will be charged to tax.​​

An Individual received different gifts (cash) from his friends, none of the gift exceeded Rs. 50,000 but the total of the gifts received during the year exceeded Rs. 50,000. What will be the tax treatment in such a case?

Sum of money received without consideration by an individual or HUF is chargeable to tax if the aggregate value of such sum received during the year exceeds Rs. 50,000.

The important point to be noted in this regard is the "aggregate value of such sum received during the year". The taxability of the gift is determined on the basis of the aggregate value of gift received during the year and not on the basis of individual gift. Hence, if the aggregate value of gifts received during the year exceeds Rs. 50,000, then aggregate value of such gifts received during the year will be charged to tax.​

​If the aggregate value of gift received during the year by an individual or HUF exceeds Rs. 50,000, whether total amount of gift will be charged to tax or only the amount in excess of Rs. 50,000 will be charged to tax?

Sum of money received without consideration by an individual or HUF is charged to tax if the aggregate value of such sum received during the year exceeds Rs. 50,000. Once the aggregate value of monetary gift received during the year exceeds Rs. 50,000, then the aggregate value of gift received during the year will be charged to tax.​

​Are gifts of immovable property received by an individual or HUF charged to tax?
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If the following conditions are satisfied then immovable property received by an individual or HUF will be charged to tax (*):

  • Immovable property, being land or building or both, is received by an individual/HUF.
  • The immovable property is received without consideration (i.e., received as a gift) or for a consideration which is less than the stamp duty value of the property by an amount exceeding Rs.50,000 or 5% of consideration whichever is higher.
  • The immovable property is a 'capital asset' within the meaning of section 2(14)​​ for such as individual or HUF.
  • The stamp duty value of such immovable property received without consideration exceeds Rs. 50,000.

(*) Refer next FAQ for situations in which immovable property received without consideration (i.e., received as a gift) by an individual or HUF is not charged to tax.​

​Are there any cases in which the value of immovable property received by an individual or HUF without consideration (i.e. by way of gift) is not charged to tax?

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If the conditions given in preceding FAQ are satisfied, then immovable property received by an individual or HUF without consideration (i.e., by way of gift) will be charged to tax. However, in the following cases gift of immovable property will not be charged to tax.

  • Property received from relatives.
  • Property received by a HUF from its members.
  • Property received on the occasion of the marriage of the individual.
  • Property received under will/ by way of inheritance.
  • Property received in contemplation of death of the donor.
  • Property received from a local authority as defined under section 10(20) of the Income-tax Act.
  • Property received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10(23C).
  • Property received from a trust or institution registered under section 12AA​.


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