Income tax exemption and rules on gifts as income of source

In this blog post I will be writing about the Income Tax rules related to the Gifts received by a person. There is many rules on receiving the Gifts based on the gifts nature and from whom the person has received the gift. The Income Tax Act 1961 has made change to the rules in 1st April 2006. We will look into the recent rules in this blog.

Not only the income, if a person receives a gift, if the value of the gift is exceeding the certain limit then he must add it in his income and pay the income tax. There are certain exceptions on declaring the gifts as income. This blog explains it in detail. If you have any doubts, please post it in the comments section. Subscribe to our future articles here.

Gifts received From Relatives

As per the Income tax act, the Gifts received from any of your relatives are fully exempt from tax. Whether you are received the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts. Here the “relatives” term defines by the Income Tax act as follows :...