Gift Tax in India — Tax on Gifts Received
Updated: 3 June 2026
India does not have a separate "Gift Tax" law — gifts are taxed under Section 56(2)(x) of the Income-tax Act as Income from Other Sources. Gifts from specified relatives (parents, spouse, siblings, children, grandparents) are fully exempt regardless of amount. For non-relatives, if total gifts in a financial year exceed ₹50,000, the entire value (not just the excess) becomes taxable. Gifts received on marriage, from inheritance/will, and from registered trusts are also exempt.
₹50,000
Annual threshold for taxable gifts from non-relatives. Cross this limit and the entire value of all such gifts is taxable — not just the amount above ₹50,000.
Specified Relatives — Fully Exempt Gifts
The following relatives are "specified relatives" under Section 56(2)(x). Gifts from them — of any amount, in any form (cash, property, shares) — are completely tax-free for the recipient.
| Relative | Relationship | Exemption |
|---|---|---|
| Spouse | Husband / Wife | Fully exempt (but clubbing provisions apply) |
| Parents | Father, Mother (incl. step-parents) | Fully exempt, no limit |
| Siblings | Brother, Sister (incl. step-siblings) | Fully exempt, no limit |
| Children | Son, Daughter (incl. step/adopted) | Fully exempt, no limit |
| Grandparents / Grandchildren | Lineal ascendants and descendants | Fully exempt, no limit |
| Spouse's siblings / parents | Brother-in-law, Sister-in-law, etc. | Fully exempt, no limit |
Tax Treatment by Type of Gift
| Type of Gift | From Relative | From Non-Relative | Valuation |
|---|---|---|---|
| Cash / cheque / bank transfer | Exempt | Taxable if total > ₹50,000 | Actual amount |
| Immovable property (land/flat) | Exempt | Taxable if stamp duty value > ₹50,000 | Stamp duty value |
| Listed shares / securities | Exempt | Taxable if FMV > ₹50,000 | Closing price on gift date |
| Jewellery / bullion / artwork | Exempt | Taxable if FMV > ₹50,000 | Fair market value |
| Gift on marriage | Exempt | Exempt (any amount, any donor) | N/A |
| Gift by will / inheritance | Exempt | Exempt | N/A |
Where to Report Gifts in ITR
Taxable gifts must be reported under Schedule OS (Income from Other Sources) in the ITR. Exempt gifts from relatives should be mentioned in Schedule EI (Exempt Income) for transparency. The applicable ITR forms are ITR-1, ITR-2, or ITR-3 depending on other income.
The tax rate on taxable gifts is the applicable slab rate — there is no flat rate. If a gift is taxable in your hands, and you later sell the gifted asset, your cost of acquisition for capital gains is the value on which you were already taxed (FMV / stamp duty value).
Frequently Asked Questions
Is gift received from parents taxable in India?
No. Gifts received from parents are fully exempt from income tax because parents are "specified relatives" under Section 56(2)(x) of the Income-tax Act. There is no monetary limit on gifts from parents — cash, property, shares, or any asset gifted by parents is tax-free in the hands of the recipient.
Is there any tax on receiving immovable property as a gift?
If immovable property is received as a gift from a specified relative (parents, siblings, spouse, etc.), it is exempt from tax. If received from a non-relative and the stamp duty value exceeds ₹50,000, the entire stamp duty value is taxable as "Income from Other Sources" in the year of receipt. Capital gains tax will also apply when the property is eventually sold — the gifted cost basis is the original cost to the donor.
How is tax calculated on a gift of shares or securities?
If shares are received as a gift from a non-relative and the fair market value (FMV) of all gifts in the year exceeds ₹50,000, the entire FMV is taxable as income. For listed shares, FMV is the closing price on the exchange on the date of gift. Future gains on these shares are computed using the FMV (on which you were taxed) as the cost of acquisition.
Is money received at a wedding taxable?
No. Cash or gifts received on the occasion of marriage are specifically exempt under Section 56(2)(x), regardless of the donor (relative or non-relative) and the amount. This exemption applies to the individual getting married — not to guests receiving gifts at the wedding.
Is a gift received from an NRI taxable for the Indian resident recipient?
It depends on the relationship. If the NRI is a specified relative (parent, spouse, sibling, etc.), the gift is fully exempt — amount and asset type do not matter. If the NRI is not a relative and the total value of gifts from all non-relatives exceeds ₹50,000 in the year, the entire amount is taxable for the Indian resident recipient under "Income from Other Sources".
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