Are gifts from relatives taxable in India?

No, gifts received from specified relatives are fully exempt with no limit. Specified relatives include spouse, siblings, parents, parents-in-law, children, their spouses, and lineal ascendants/descendants. This applies to cash, property, jewellery, and all other assets.

What is the ₹50,000 gift tax exemption?

If you receive gifts from non-relatives, the aggregate value of all such gifts up to ₹50,000 in a financial year is exempt. If the total exceeds ₹50,000, the ENTIRE amount (not just the excess) becomes taxable under Income from Other Sources.

🎁 Section 56(2)(x) Analysis

Gift Tax Calculator

Check if gifts received are taxable. Cash, property, jewellery, shares — know your exemptions for relatives, marriage gifts, inheritance and more under Indian tax law.

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Gift Details

🎁 Type of Gift

💰 Value of Gift (₹)

📄 Stamp Duty Value (for property)

💵 Consideration Paid (if any)

For property bought below stamp duty value

👤 Relationship with Donor

💼 Your Income Tax Slab Rate

✅ Specified Relatives (Always Exempt)

Spouse

Brother / Sister

Parent

Spouse's Parent

Children

Children's Spouse

Grandchildren

Sibling's Spouse

Great Grandparent

Uncle / Aunt ❌

Cousin ❌

Friend ❌

Gift Value₹0

Exemption Applied₹0

Taxable Amount₹0

Tax at Your Slab Rate₹0

Tax + 4% Cess₹0

Effective Tax Rate on Gift0%

📘 Gift Tax Exemptions Summary

Scenario	Exempt?	Limit
From specified relative	✅ Fully Exempt	No limit
On occasion of marriage	✅ Fully Exempt	No limit
Under will / inheritance	✅ Fully Exempt	No limit
In contemplation of donor's death	✅ Fully Exempt	No limit
From non-relative (cash)	⚠️ Conditional	≤₹50K exempt; >₹50K fully taxable
From non-relative (property)	⚠️ Conditional	Stamp duty ≤₹50K exempt

Understanding Gift Tax in India

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Section 56(2)(x)

Since 2017, gifts are taxed under Section 56(2)(x) in the hands of the receiver. The old Gift Tax Act (on donors) was abolished in 1998. Now, gifts above ₹50K from non-relatives are taxable as "Income from Other Sources".

⚠️

₹50,000 Threshold

For non-relative gifts: if aggregate value of cash gifts or FMV/stamp duty value of property gifts exceeds ₹50,000, the entire amount becomes taxable — not just the excess over ₹50K. Keep aggregate gifts under ₹50K to stay exempt.

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Property Gifts

For property received without consideration: stamp duty value > ₹50K = fully taxable. For property bought below stamp value: if diff > ₹50K or >10% of consideration, the differential is taxable to buyer.

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Frequently Asked Questions

Are gifts from relatives taxable? ▼

No. Gifts from specified relatives (spouse, siblings, parents, parents-in-law, children, grandchildren and their spouses) are fully exempt with no upper limit. This includes cash, property, jewellery, and any asset.

What happens if gifts from non-relatives exceed ₹50,000? ▼

If aggregate gifts from non-relatives exceed ₹50,000 in a year, the entire amount becomes taxable — not just the excess. For example, if you receive ₹60K, the full ₹60K is taxable, not ₹10K.

Are wedding gifts taxable? ▼

No. Gifts received on the occasion of marriage are fully exempt, regardless of the donor or amount. This is one of the key exemptions under Section 56(2)(x). However, gifts received on engagements, anniversaries, etc. don't qualify.

Is inherited property/money taxable? ▼

Property or money received by way of inheritance or under a will is fully exempt. However, any income subsequently earned from inherited assets (rent, interest, dividends) is taxable in your hands.