BANGALORE: All of us love to receive gifts, but what if your gifts are taxed? The last thing that you want to think of while receiving a gift is about the tax implications on it. Generally, gifts are not regarded as income chargeable to tax. According to Section 56(2), any sum of money exceeding Rs.50000 received without consideration by an individual or an HUF from any person is chargeable, reports Yahoo.
Let’s have a look at the gifts that are charged and the ones that are tax exempt:
Gift received in form of cash up to Rs.50,000 is not taxable: Always remember that there is no tax to be paid on gifts received whether it is cash or of any kind, also if the amount of the gift is up to Rs.50,000 in a year. However if the total amount as a gift crosses Rs.50,000 then there is no doubt, you will have to pay the tax on the total amount received. For instance, if you are gifted Rs.30,000 by your friend in a year, then you don’t have to pay any tax on that amount, as its below the limit of Rs.50,000. But at the same time if you receive a gift of cash anything more than Rs.50,000 then you are ought to pay the tax for that amount.
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