Are all gifts received on Diwali taxable?\u00a0<\/h3>
No. Not all gifts are taxable. Gifts received from certain relatives (such as parents, siblings, spouses, children, grandparents, or grandchildren) are completely tax-free, regardless of the amount. However, if the gift from someone who is not a relative exceeds \u20b950,000 in a year, the entire amount will be taxable as \u201cincome from other sources.\u00a0<\/p>
What is the tax-free limit for Diwali gifts?\u00a0<\/h3>
Gifts received from non-relatives are tax-free within \u20b950,000 per year. But once this limit is crossed, the entire amount becomes taxable. Gifts given by relatives do not fall under this limit. Gifts given by them are always tax-free.\u00a0<\/p>
Are gifts like jewellery or property also tax-free?\u00a0<\/h3>
Yes. Gifts are not limited to cash. Jewellery, shares, valuable collectables, and even immovable property like land or flats can be taxable if they are received from non-relatives, and the total value exceeds \u20b950,000. In this case, it is important to have a proper valuation certificate.\u00a0<\/p>
Are cousins \u200b\u200bconsidered relatives under the Income Tax Act?\u00a0<\/h3>
No. Cousins \u200b\u200bare not considered relatives under the Income Tax Act. Therefore, a gift received from a cousin will be treated as a gift from a non-relative. If its total value exceeds \u20b950,000 in a year, it will become taxable and be added to the recipient's income.\u00a0<\/p>
Are Diwali gifts received from the office taxable?\u00a0<\/h3>
Yes. Gifts received from employers are treated as perquisites under the Income Tax Act. However, if its total value is within \u20b95,000 in a year, it is tax-free. But if it exceeds this, the excess amount will be added to the employee's salary and become taxable.\u00a0<\/p>
Are wedding gifts and Diwali gifts treated in the same way?\u00a0<\/h3>
No. Wedding gifts, regardless of their source, are completely tax-free. However, there is no separate exemption for gifts on Diwali or other festivals. The tax liability here depends on whether the donor is a relative or not and the value of the gift.\u00a0<\/p>
What documents should be kept proving tax-free?\u00a0<\/h3>
It is important to keep family documents or declarations to prove gifts from relatives. In addition, bills or valuation certificates should be kept if you receive valuable gifts. Digital transaction records also help as proof of transparency. Having these documents makes it easier to answer questions from tax authorities.\u00a0<\/p>
What happens if I don't report taxable gifts?\u00a0<\/h3>
If you don't report taxable gifts, you may face penalties, additional tax claims, or even surveillance by the tax department. These days, authorities also analyze bank transactions and social media information. So, declaring them correctly as “income from other sources” is the safest way.\u00a0<\/p>
Are gifts received from friends abroad also taxable?\u00a0<\/h3>
Yes. Gifts received from friends abroad or non-relatives are also taxable in India if their value exceeds \u20b950,000 in a year. The rule remains the same, only gifts given to relatives are completely tax-free.\u00a0<\/p>
Is expert help necessary for tax planning on Diwali gifts?\u00a0<\/h3>
Of course. A tax consultant or professional expert can provide proper guidance on exemptions, proper valuation, documentation, and reporting. This makes it easier to comply with the law and enables smart financial planning. Corpbiz makes this process easier and hassle-free.\u00a0<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"
The festival of lights, Diwali, brings a special moment of joy, gratitude, and family bonding in our lives. During this time, giving gifts to loved ones has become a part of the festival. Gold coins, diamond jewellery, or cash, any gift is a symbol of our love and goodwill. However, this expression of love can […]<\/p>\n","protected":false},"author":86,"featured_media":70215,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"acf":{"service_id":"0"},"authorName":"Ilma Siddiqua","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/ilma.png","authorDescription":"Ilma Siddiqua is an environmental professional with 8+ years of healthy experience in Business Compliance MOEF, Tyre Waste, Hazardous Waste, Battery Waste, AVSF, EPR, State Pollution Control Board, etc. Penning words give her the utmost pleasure, and that\u2019s why she opted for drafting amazing writeups that move the readers to the core.","postViews":936,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/70209"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=70209"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/70209\/revisions"}],"predecessor-version":[{"id":70232,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/70209\/revisions\/70232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/70215"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=70209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=70209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=70209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}