Section 56(2)(x) · Income Tax Act · India

Gift Tax Calculator (56(2)(x))

Find out instantly whether a gift is fully tax-free or taxable as income from other sources — and roughly how much tax you would owe.

Category
Income Tax & TDS
Takes about
1 min
Updated
Sep 2026
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  • Instant, on-screen results
  • Built by our CA · CS team
  • Rules cited on the page
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Calculator

Enter your figures — the result on the right updates as you type.

Full breakdown below ↓
🎁 The gift
Gift amount / value Cash + value of property received
Enter the aggregate of all gifts received in the financial year from non-relatives. The ₹50,000 threshold applies to the total, not to each gift.
👪 Who gave the gift?
Is the giver a relative?
Gifts from a relative are always tax-free, whatever the amount. "Relative" is defined narrowly — see the list below.
📜 Occasion / source
On what occasion was it received?
📊 Recipient's slab Optional
Your income tax slab rate
A taxable gift is added to your income and taxed at your slab rate (plus 4% cess). Pick your top slab for an estimate.

How this gift is treated

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Disclaimer: Indicative estimate under Section 56(2)(x) for resident individuals. Actual liability depends on your full income, exemptions and documentation. Not legal or tax advice.

Gift tax in India — the ₹50,000 rule

India has no separate "gift tax". Instead, Section 56(2)(x) treats certain gifts as income from other sources in the hands of the person who receives them. The key trigger is the ₹50,000 aggregate threshold: if the total of gifts received from non-relatives in a financial year crosses ₹50,000, the entire amount becomes taxable — not just the part above ₹50,000.

₹50,000
Aggregate limit from non-relatives per financial year
100%
Once you cross ₹50,000 the whole amount is taxed, not the excess
₹0
Tax on any gift from a relative — no upper limit
Slab
Taxable gifts are taxed at your normal income-tax slab rate

When a gift is tax-free vs taxable

A gift is completely exempt if it falls into any of the carve-outs below. If it does not — and the aggregate from non-relatives exceeds ₹50,000 — the full value is added to your income.

Always tax-free
From a relativeAny amount
On your marriageAny amount
Under a will / inheritanceAny amount
In contemplation of deathAny amount
From a local authorityAny amount
From a registered trust / fund (12A, 10(23C))Any amount
Taxable as "other income"
Non-relative, ordinary occasionIf aggregate > ₹50,000
Cash / cheque / bank transferIf aggregate > ₹50,000
Immovable property (no/low consideration)If SDV gap > ₹50,000
Shares, jewellery, art, bullionIf FMV > ₹50,000
Once the ₹50,000 aggregate is breached, the whole amount is taxable — the ₹50,000 is a threshold, not an exemption slice. SDV = stamp-duty value; FMV = fair market value.

Worked examples

The same amount can be fully taxable or fully exempt depending only on who gave it and the occasion. Compare:

₹2,00,000 from a friend
Non-relative > ₹50kTaxable
Taxable amount₹2,00,000
Tax @ 30% + cess₹62,400
₹2,00,000 from your father
RelativeExempt
Taxable amount₹0
Tax payable₹0
₹40,000 from a friend
Under ₹50k aggregateExempt
Taxable amount₹0
Tax payable₹0
A ₹2,00,000 gift from a friend is fully taxable because it exceeds ₹50,000 — at a 30% slab that is about ₹62,400 (30% + 4% cess). The same ₹2,00,000 from your father is exempt because he is a relative. And ₹40,000 from a friend is exempt because the aggregate stays under ₹50,000.

Key terms explained

Who counts as a "relative"?

Spouse; your brother/sister and your spouse's brother/sister; brother/sister of either parent; any lineal ascendant or descendant of you or your spouse; and the spouse of any of these. A cousin, friend or colleague is NOT a relative for this section.

The ₹50,000 aggregate

All gifts from non-relatives in the year are added together. If the total exceeds ₹50,000, the entire total is taxable. Cross it by even ₹1 and the whole amount — not just the excess — becomes income.

Marriage exemption

Gifts received on the occasion of your own marriage are exempt regardless of who gives them or the amount. This exemption does not extend to anniversaries, birthdays or a child's marriage.

Property & the value gap

For immovable property gifted for no/low consideration, tax applies on the stamp-duty value gap; for shares, jewellery and bullion, on the fair market value — each subject to the same ₹50,000 test.

Questions people ask

Short answers on Gift Tax Calculator. Tap a question to open it.

01Are gifts taxable in India?

There is no separate gift tax, but section 56(2)(x) taxes gifts as "income from other sources" in the recipient's hands. If the aggregate of money and specified property received without consideration in a year exceeds ₹50,000, the whole amount is taxable — not just the excess.

02Which gifts are completely exempt?

Gifts from a relative as defined in the section, gifts on the occasion of the individual's marriage, gifts under a will or by inheritance, gifts in contemplation of death, and gifts from a local authority, a registered trust or an institution referred to in section 10(23C).

03Who counts as a "relative" for this purpose?

Spouse, brother or sister, brother or sister of the spouse, brother or sister of either parent, any lineal ascendant or descendant of the individual or of the spouse, and the spouse of any of these. Cousins, and friends, are not relatives.

04Is a gift of immovable property treated differently?

Yes. If received without consideration and the stamp duty value exceeds ₹50,000, that whole value is taxable. If received for inadequate consideration, the difference is taxable where it exceeds the higher of ₹50,000 and 10% of the consideration.

05Are gifts to a spouse tax free?

The gift itself is exempt because a spouse is a relative, but any income the gifted asset later earns is clubbed back into the transferor's income under section 64(1)(iv).

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.