6 Things To Know About Gift Tax

Outlook Money

Taxable Amount

A gift with a fair market value of over Rs 50,000 is taxable for the donee.

Taxable Amount

What Is A Gift Under I-T Act?

A “gift” could be cash, property or any assets received without payment, as defined by the Income-tax Act.

Gift Under I-T Act

Exemptions

Certain gifts received from spouses, siblings, parents, lineal ascendants or descendants, etc., are exempt from tax.

Exemptions

Inheritance

Gifts received under a will, by way of inheritance, or in contemplation of the donor’s death are also exempt.

Inheritance

More Exemptions

Gifts received from local authorities, charitable and religious trusts, educational and medical institutions, and certain funds or trusts are also exempt from tax.

More Exemptions

Hindu Undivided Family (HUF) 

Gifts received on the total or partial partition of a Hindu Undivided Family (HUF) assets and gifts from trusts established solely to benefit an individual’s relatives are exempt from tax. 

Compiled By Himani Verma

HUF

5 Things To Consider While Making A Will