Do You Receive Gifts From Clients As A Result Of Good Work?

Hardik Lashkari | Last updated: 03 August 2021

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This article explains whether gifts received from clients for good work are subject to income tax. Using the example of a fashion designer receiving a diamond ring from a client, it clarifies that such gifts are considered business income under Section 28(iv) of the Income Tax Act and must be declared for taxation. However, gifts received during a marriage are tax-exempt under Section 56(2).

Komal, a renowned fashion designer, is famous across Pune city for designing stylish and elegant ladies wear. She designs suits, dresses, and other clothing accessories for the middle-to-rich class of society. Once, Namrata, wife of a leading diamond merchant of the city, hired Komal to desig

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About the Author

Hardik Lashkari

Content Writer

Tax Consultant | GST Income Tax Advisor | Content Writer | Speaker Some of the prominent startups companies I have been associated with - 1. Avalara Inc 2. ClearTax 3. Masters India 4. Tax2win 5. GST Professionals 6. Especia Associates LLP I advise on Income Tax and GST matters. I advise on ho ... Read more

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