When gifts of monetary value are not taxed

Gifts are welcome in any form. Among gifts, many people prefer to receive cash because they can use it as they want to. However, unless received from specified relatives, these gifts can be liable to tax. But here is some good news. Under certain conditions, even monetary gifts do not attract income tax in the hands of the recipient. Read on to know more. Exempt conditions Tax implications on gifts are covered under section 56(2) of the Income-tax Act, 1961. The Act provides that any gift received in excess of Rs50,000 in form of cash, demand draft, cheque or specified assets by an individual or Hindu Undivided Family (HUF) is taxable under the income tax head 'inco

This article was originally published on November 25, 2017.