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What is covered
| Gift | When taxable | Amount taxed |
|---|---|---|
| Money | Aggregate above ₹50,000 in the year | Whole amount, not just the excess |
| Immovable property without consideration | Stamp-duty value above ₹50,000 | Stamp-duty value |
| Property bought below value | Gap above the higher of ₹50,000 and 10% | The gap |
| Shares, jewellery, art etc. | FMV above ₹50,000 | FMV (or gap if bought cheap) |
Who counts as a relative
Spouse; brothers and sisters (and their spouses); brothers and sisters of your spouse (and their spouses); brothers and sisters of either parent; any lineal ascendant or descendant of you or your spouse (and their spouses). A friend or cousin is not a relative.
Always exempt
- Gifts received on your marriage — from anyone
- Inheritance or under a will
- From a local authority, or a registered charitable trust or institution
- Gifts in contemplation of death of the payer
Worked example
Example: On her birthday Simran receives ₹40,000 from a friend and ₹30,000 from her uncle (father's brother). Uncle is a relative — exempt. The friend's ₹40,000 alone is under ₹50,000 — exempt. Had two friends given ₹30,000 each, the whole ₹60,000 would be taxable.
Common mistakes
- Thinking only the amount above ₹50,000 is taxed
- Treating cousins as relatives
- Not keeping a gift deed for large family gifts
Frequently asked questions
No. A parent is a relative; the gift is exempt. Income later earned on gifted money may be clubbed in some cases (gifts to spouse or minor child).
Separately, receiving ₹2 lakh or more in cash in one transaction is barred by section 269ST of the 1961 Act — use a bank transfer.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
