How are gifts from friends taxed?

Forums General Discussion How are gifts from friends taxed?

How are gifts from friends taxed?

Are monetary gifts received from friends liable to tax?

Profile photo of  Sonal Kutade Asked By: Sonal Kutade 2 replies 2 helpful answers Last Updated: 3 weeks, 6 days ago
  • Profile photo of  Sonal KutadeSonal Kutade
    Participant

    Are monetary gifts received from friends liable to tax?

  • Gifts received from relatives are not charged to tax. Friend is not a relative as defined in the above list and hence, gift received from friends will be charged to tax (if other criteria of taxing gift are satisfied).​

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    If Cash Gift received from friends exceeds Rs. 50,000/- in aggregate (i.e. all amounts given by friends during the whole previous year) then the entire amount would be chargeable to tax under section 56(2)(x). But if the cash received during the previous year in aggregate does not exceeds Rs. 50,000/- (i.e. upto 50,000/-) then no tax implications would happen.

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