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Gift(cash) in marriage and tax implication for the same

vishnu kumar (MBA) (60 Points)

14 November 2013

Hi I want to know how an individual is treated by Tax department for receiving gift mainly cash in his/her marriage. In case, if one receives Rs 5 lakh and more from many individuals(more than 200) on occassion of his/her marriage. Do we need to document for the same and which type of document needed to save this for future reference. Can we invest this cash in any kind (fixed deposits) or shares or mutual fund ? Is there any tax liability ? Thanks in advance.

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CA Pallav Singhania (IT System Auditor) (33678 Points)
Replied 14 November 2013

Any gift received by an individual on marriage is not taxable. The gift on the occasion of marriage could be of cash or property and the value could be of any amount. Also, the gifts received from non-specified relatives on the occasion of marriage are not considered taxable.

So even if you get Rs 1 crore as wedding gift from someone in your wedding, it’s not taxable in your hands.

Gift made by way of cash or cheque does not mandatory requires to be executed through a gift deed. Writing a plain typed note on a paper will generally suffice. It is not required to be stamped and registration is also not needed. You may simply mention the names of persons, their relation and that the gift is being given out of love and affection.

Gift made by way of movable property is required to be made in stamp paper and stamped by the notary or court, and registration of gift deed is not required in this case.

There is indistinctness with respect to compliance of the gift deed at times, Whether a gift deed is required to be made in every circumstance

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vishnu kumar (MBA) (60 Points)
Replied 14 November 2013

Thanks for quick reply. So bride and groom , both can prepare their individual list of gift(cash) given by persons in marriage on a plain paper. One more thing, can they transfer this money say 10 lakh cash to their individual account at a later point of time(after nine months of marriage) as she didnot have the bank account before marriage and it took time due to personal reason. As bank guys will question for depositing such a large amount say 10 lakh, so can this piece of paper will be enough proof for the same. Thanks in advance.

CA Pallav Singhania (IT System Auditor) (33678 Points)
Replied 14 November 2013

Yes, they can transfer such cash gift to any of their relative as a gift...

No tax on gift to relative..

However, such relative must be under the purview of income tax act...

AjaxJags (Owner) (72 Points)
Replied 23 March 2017

Hi Pallav Sir,

I received about 4 lakhs as gift in form of cash from relatives and far guests on my marriage, so weould a list of relatives/guest with the amount received on piece of paper would be sufficient for future refences?

Thanks!