Gift Tax Calculator
Is your gift taxable? Find out in seconds under Section 56(2)(x) — who it's from, the occasion, and the ₹50,000 rule that catches people out.
About the gift
Whether a gift is taxed depends on who gave it, why, and how much.
Educational estimate under Section 56(2)(x). It covers cash and the value of movable and immovable property received as a gift, and applies the relative, marriage and inheritance exemptions. Special valuation rules for property below stamp-duty value, and employer gifts taxed as perquisites, are not modelled. Not tax advice — confirm with a qualified professional.
Tax Guide
Gift Tax in India: What's Taxable & What's Not
Who you can receive money from tax-free, the ₹50,000 rule for everyone else, and the exemptions for marriage and inheritance — Section 56(2)(x) in plain English.
Updated for FY 2025-26 (AY 2026-27).
India has no separate gift tax — but a gift can be taxed as your income. Gifts from relatives are always exempt, gifts on your own marriage are always exempt, and gifts from anyone else are tax-free only up to ₹50,000 a year in total. Cross that line and the whole amount is taxed.
There's no gift tax — but there is tax on gifts
India abolished the standalone Gift Tax Act back in 1998. What replaced it is subtler: under Section 56(2)(x), a gift you receive can be treated as "Income from Other Sources" and taxed at your slab rate. The giver pays nothing; the tax, if any, falls on the recipient.
Whether it's taxed comes down to three questions: who gave it, why, and how much.
Gifts from relatives: unlimited and tax-free
A gift from a relative is fully exempt, with no upper limit. Your father can give you ₹1 crore and you'd owe nothing. But "relative" has a precise legal meaning — and it's narrower than everyday use:
- Your spouse
- Your parents and grandparents (lineal ascendants), and your children and grandchildren (lineal descendants)
- Your siblings, and your spouse's siblings
- Your parents' siblings (uncles and aunts)
- The spouse of any of the above
The trap: cousins, nephews and nieces are NOT relatives for this purpose. A gift from a cousin follows the ₹50,000 rule like any other non-relative.
The ₹50,000 rule — and why it's a cliff, not a step
For gifts from non-relatives, the law gives you a small annual allowance: if the total of all such gifts in a financial year stays at or below ₹50,000, none of it is taxed. Go even ₹1 over, and the treatment changes sharply.
Cross ₹50,000 and the entire amount is taxable — not just the excess. Receive ₹55,000 from friends in a year, and all ₹55,000 becomes taxable income, not ₹5,000. This is the single most misunderstood part of the gift rules, and it makes the threshold a cliff edge rather than a free allowance.
The limit is an aggregate: it's the sum of every non-relative gift across the year, not a per-gift or per-person figure.
The exempt occasions
Some gifts escape tax regardless of who gives them or how large they are:
- Your own marriage. Any gift — cash, gold, property — received on the occasion of your wedding is fully tax-free, with no limit and no restriction on the giver. This is the only life event with a blanket exemption.
- Inheritance or under a will. Money or property you inherit is not treated as a taxable gift.
- In contemplation of death. A gift from someone who is gravely ill and expecting to die.
- From certain institutions — registered charitable trusts, specified funds and local authorities.
Note the limits of the marriage exemption: it's your own marriage. Gifts you receive at your child's or sibling's wedding are treated under the normal rules. And birthdays, anniversaries and housewarmings get no special relief at all.
Property gifts and the "inadequate consideration" rule
Gifts aren't only cash. Gold, jewellery, shares, mutual fund units and property all count, valued at market or stamp-duty value. Property has an extra wrinkle: if you buy it for less than its stamp-duty value, and the gap exceeds ₹50,000, that difference can be taxed as your income — the law treats a steep discount as a partial gift.
Example: a friend "sells" you a flat worth ₹50 lakh for ₹30 lakh. The ₹20 lakh gap is treated as your taxable income. Between relatives, though, the gift itself is exempt.
If you're an NRI
The same rules apply when the recipient is taxable in India. A gift from an NRI friend above ₹50,000 is taxable in the resident recipient's hands, just as from anyone else, while a gift from an NRI relative stays exempt. When a resident gifts money to an NRI, the income-tax position is generally clean for a relative, but the transfer must also respect FEMA and the Liberalised Remittance Scheme limits — a separate rulebook from income tax.
Keep the paperwork
Exempt doesn't mean undocumented. For a gift from a relative, keep evidence of the relationship and the transfer (bank records, a gift deed for property). For a large gift, a simple gift deed removes doubt later. The tax department increasingly cross-checks large credits, and "it was a gift" is far easier to defend with a paper trail than without one.
Reporting it in your ITR
A taxable gift goes under Income from Other Sources (Schedule OS) and is taxed at your slab. Even exempt gifts are worth recording in your own files, and large ones are best disclosed for transparency. One transition note: from Tax Year 2026-27, Section 92 of the Income-tax Act 2025 carries forward the same substance as the old Section 56(2)(x) — the rules don't change, only the section number.
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Tax Guide
Frequently Asked Questions
When gifts are taxable in India, who counts as a relative, and how the 50,000 rule really works.
Not as a separate tax — the Gift Tax Act was abolished in 1998. But under Section 56(2)(x), a gift can be taxed as the recipient's income under “Income from Other Sources”. The giver pays nothing; any tax falls on the person receiving the gift.
No. Gifts from a relative are fully exempt with no upper limit. You could receive ₹1 crore from your father, mother, spouse, children or siblings and owe no tax. The exemption is unlimited for defined relatives.
Your spouse; your parents, grandparents, children and grandchildren; your siblings and your spouse's siblings; your parents' siblings (uncles and aunts); and the spouses of any of these. Crucially, cousins, nephews and nieces are not relatives for this purpose.
Up to ₹50,000 in total from all non-relatives in a financial year. It is an aggregate limit, not per gift or per person. Stay at or below ₹50,000 and nothing is taxed.
The entire amount becomes taxable, not just the part above ₹50,000. If you receive ₹55,000 from friends in a year, all ₹55,000 is added to your income and taxed at your slab rate. The threshold is a cliff, not a free allowance.
No. Any gift received on the occasion of your own marriage is fully exempt — cash, gold or property, any value, from anyone. It is the only life event with a blanket exemption. Gifts at someone else's wedding, or on birthdays and anniversaries, do not get this relief.
There is no separate gift-tax rate. A taxable gift is added to your total income and taxed at your normal slab rate — so 5%, 20%, 30% and so on, depending on your income.
No. Money or property received by inheritance or under a will is not treated as a taxable gift. Any income you later earn from inherited assets is, of course, taxable in the normal way.
Yes. “Gift” is not limited to cash — it includes gold, jewellery, shares, mutual fund units and immovable property, valued at market or stamp-duty value. The same relative and threshold rules apply.
If you buy property for less than its stamp-duty value and the gap exceeds ₹50,000, that difference can be taxed as your income — the law treats a steep discount as a partial gift. Between relatives, the gift itself remains exempt.
The same rules apply. A gift from an NRI relative is exempt; a gift from an NRI friend above ₹50,000 is taxable in the resident recipient's hands. When a resident gifts money to an NRI, FEMA and the Liberalised Remittance Scheme limits also apply, separate from income tax.
Generally yes, but under different rules — employer gifts are usually taxed as a perquisite under “Salaries”. Non-monetary gifts up to ₹5,000 in a year are typically exempt; beyond that they are taxable.
Yes, keep it. For a gift from a relative, retain proof of the relationship and of the transfer, and use a gift deed for property or large sums. The tax department cross-checks large credits, and a paper trail is what makes “it was a gift” easy to defend.
A taxable gift goes under Income from Other Sources (Schedule OS) and is taxed at your slab. Exempt gifts do not need to be offered to tax, but keeping your own record — and disclosing large ones — is prudent.
No. It is an educational estimate under Section 56(2)(x). It does not model every case — such as property below stamp-duty value or employer perquisites. For a specific or large gift, confirm the position with a qualified professional.