Home > Income Tax > Help Center > Tax on Wedding Gifts - Explained Last Updated: Feb 21sth 2023
It is customary for Indian families to give gifts on any occasion. Section 56(2)(x) of Income tax act, 1961 deals with the taxation of gifts. Know more on what's latest, tax impact, what to care ?
It is customary for Indian families to give gifts on any occasion. Earlier we have gift tax which was abolished in October 1998. Under Gift tax, the donor of the git was required to pay gift tax on the gift if the value is more than Rs 30,000.
W.e.f October 1998, all gifts were made tax free, and many people had utilized this as loophole for tax evading. Hence it was re-introduced in Income Tax act in 2004. This was again amended in 2017.
★ Section 56(2)(x) of Income tax act, 1961 deals with the taxation of gifts.
While this article is specific to Wedding / Marriage, to know the taxability on any gifts, refer gift tax calculator.
Gifts are of three types monetary, immovable property, and movable property, the taxability on such gifts vary depending on the Occasion and the person and/or entity from which such gift was received. Gift Tax Calculator gives you the taxability of a transaction.
Visit Gift Tax Calculator to know the taxability of a gift.
Or get a Tax Consultation appointment from a Tax Expert help from EZTax.in today
For Understanding Learn More On @ Clubbing of Income
Many people think that the gifts received at the time of wedding is tax exempt and not required to disclose in income tax returns. But it is mandatory to disclose the gifts received at the time of wedding in Schedule Exempt income in Income tax returns.
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