I got married on Jan 2 this year and received cash gifts from several friends and relatives which added to Rs 65,000. Do I need to show this amount in my tax returns?
The amount of gift that you have received will not be taxable income as it can be claimed as exempt from tax
I got married on Jan 2 this year and received cash gifts from several friends and relatives which added to Rs 65,000. Do I need to show this amount in my tax returns?
Ratanpreet Dhingra, Delhi
Congratulations on the wedding. Wedding and child birth are two important events when one tends to receive gifts from family and friends. The amount of gift that you have received on your wedding day will not be taxable as income in your or your wife’s hands as it can be claimed as exempt from tax. However, any sum exceeding Rs 50,000 received by you in a financial year is taxed under the head, ‘income from other sources’ in your hands. But an exemption is allowed if the sum is received from a relative or on the occasion of marriage as per Section 56 of the Act, which is what you need to state when filing your tax returns.