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Treat Marriage Day Gifts as HUFs Income?

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Sukesh M R

26 Points Posted on 30 June 2022

Hello,

As per the rules, the gifts received on the day of marriage is non taxable without any limit.

These gifts are given by relatives and friends to both bride and groom, the bride and groom together form a HUF.

So, can these gifts received by the bride and groom on the marriage day be treated as an income for HUF (without any limit of the gifts received?)

Thanks in advance for helping in clearing the doubt!

Thanks

Replies (2)

Quick Summary

This discussion explores whether gifts received by a couple on their wedding day, which forms a Hindu Undivided Family (HUF), can be considered HUF income. While gifts from relatives and friends on the occasion of marriage are generally tax-exempt without limit, the thread clarifies specific conditions and definitions of 'relative' under Income Tax Rules. It also touches upon the tax implications if these gifted assets are later converted into HUF property.

Ruhaan khan

28 Points Posted on 30 June 2022

Gifts received from Relative are exempt without any limit, provided the respective fall within the definition of relative as per Income Tax Rules. However, gifts recevied from friends on occasion of marriage is totally exempt without any limit.

Mahesh Shah

1175 Points Posted on 30 June 2022

Gifts recived from list of relatives as notified in incometax rules are not taxed as marriage gift
gifts from unrelated relatives as per tax rules are not taxed upto 50000
if later on these amounts are converted into huf property then income derived from such converted property will be taxed as per huf