IT New Rule: It is important for you to know that some gifts come under the ambit of tax. However, these are not part of your direct income. These come under the purview of Section 56(2) of the Income Tax Act, 1961.
Gifts received from employers to employees also come under the ambit of tax. But, there is a condition for this. Only if the value of gift received from the employer is more than Rs 5,000 in a financial year will it come under the ambit of tax.
Diwali is near. Soon people will start giving gifts to each other. On the occasion of Diwali, employees receive gifts from the employer. Shopkeepers give gifts to customers. Gifts are also exchanged between friends and relatives. It is important for you to know that some gifts come under the ambit of tax. However, these are not part of your direct income. These come under the purview of Section 56(2) of the Income Tax Act, 1961. It is important for you to know about the tax rules related to gifts. Many people are not aware of this, due to which they fear getting into trouble.
What is the definition of relative in income tax?
Gifts received from relatives do not come under the purview of tax. But, it is important to know which relationships come under the purview of relatives as per income tax rules. According to income tax rules, relatives mean the husband and wife of a person. The person’s brothers and sisters also come under the scope of relatives. Brothers and sisters of the person’s spouse also come under the scope of relatives. This means that if someone related to these relations gives you a gift, it will not come under the purview of gift tax.
Gift received from friend is taxable
A gift received from a friend comes under the ambit of tax. This means that if any of your friends gives you a gift on the occasion of Diwali, its value will be added to your income. Then it will be taxed as per your slab. But, there is a condition in this. That is, only if the value of the gift crosses Rs 50,000 in a year, it will come under the tax net. If the value of the gift is less than Rs 50,000 in a financial year then it will not come under the ambit of tax. The Income Tax Department has given a big relief that gifts received on the occasion of marriage will not come under the ambit of tax.
Tax is also levied on gifts received from the employer
Gifts received from employers to employees also come under the ambit of tax. But, there is a condition for this. Only if the value of gift received from the employer is more than Rs 5,000 in a financial year will it come under the ambit of tax. This means that if a gift of less than Rs 5000 is received from the employer, it will not come under the ambit of tax.
