Gifts that are taxed (and not)

You may think you are gifting out of love, but in some instances, gifts can invite the taxman to your doorstep. So, let's look at how gifts can actually become a part of tax planning. What are 'gifts' as per the Income Tax Act? Monetary (cash, cheque or received through electronic mode) Immovable property (land or building or both) Specified movable property (shares/securities, jewellery, bullion, paintings or any work of art) No tax is applicable on other gifts like television, car and so on. These gifts are non-taxable If they are a marriage gift If they are received under a will If they are received through inheritance If they are given by a person in anticipation of hi

This article was originally published on December 08, 2022.