Outlook Money
A gift with a fair market value of over Rs 50,000 is taxable for the donee.
A “gift” could be cash, property or any assets received without payment, as defined by the Income-tax Act.
Certain gifts received from spouses, siblings, parents, lineal ascendants or descendants, etc., are exempt from tax.
Gifts received under a will, by way of inheritance, or in contemplation of the donor’s death are also exempt.
Gifts received from local authorities, charitable and religious trusts, educational and medical institutions, and certain funds or trusts are also exempt from tax.
Gifts received on the total or partial partition of a Hindu Undivided Family (HUF) assets and gifts from trusts established solely to benefit an individual’s relatives are exempt from tax.
Compiled By Himani Verma