As section 56 of the Income Tax Act,
If the value of gifts received is more than Rs. 50,000 a year, then such amount is taxed as income in the hands of the receiver. These gifts may be in any form – cash, jewellery, movable and immovable property, shares etc.
However, this rule is not applicable if your relatives present the gifts.
Relatives as per income tax act, 1961
Accordingly, there is no limit for accepting gift from relative.
ensure that you guys prepared gift deed.
Yes, it is applicable,
But you can plan accordingly.
'269ST. Mode of undertaking transactions.—No person shall receive an amount of two lakh rupees or more—
| (a) | in aggregate from a person in a day; or | |
| (b) | in respect of a single transaction; or | |
| (c) | in respect of transactions relating to one event or occasion from a person, |
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:
Provided that the provisions of this section shall not apply to—
| (i) | any receipt by— |
| (a) | Government; | |
| (b) | any banking company, post office savings bank or co-operative bank; |
| (ii) | transactions of the nature referred to in section 269SS; | |
| (iii) | such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify. |
Explanation.—For the purposes of this section,—
| (a) | "banking company" shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS; | |
| (b) | "co-operative bank" shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.'. |
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