Gift limit

This discussion clarifies gift tax regulations in the UK, particularly concerning spouses and relatives. While gifts between spouses are generally exempt from tax under Section 56(2)(x) of the IT Act, income generated from such gifts may be subject to 'clubbing' under Section 64. The thread also addresses the necessity of a formal gift deed, concluding that a bank transfer often suffices as evidence, though confirmation from the recipient might be needed in case of queries.