Gifts received from non-relatives of above Rs 50,000 a year are taxable

Gifts from employer become taxable once their value exceeds Rs 5,000; bonus is also taxable

A great deal of gifting happens during the festival season, especially around Diwali. While enjoying these gifts, you must remember that gifts from many sources are taxable once their value crosses a threshold limit. And it is your duty as a taxpayer to pay tax on those gifts.

The Income-Tax (I-T) Act defines “gift” as any asset received without consideration, either in cash or in kind. Aditya Chopra, managing partner, Victoriam Legalis-Advocates & Solicitors says, “It can include cash, movable property, immovable property, jewellery, etc.”

Gifts from close relatives

Gifts received from close relatives are exempt from tax under Section