YOU CAN BE TAXED ON CERTAIN DIWALI GIFTS RECIEVED
The season of Diwali brings along with lights, lots of gifts and happiness
But this gifts could cost you tax.
Gifts from friends relatives and employers are taxed different.
Tax on gifts received from Employers are tax-exempt if their total amount is less than
Tax on gifts received in a financial year from Employers are tax-exempt if their total amount is less than
Any gifts you receive over Rs.5000 will be added to your income and taxed as per your tax bracket.
Some employers give Diwali bonus instead of gifts. This will be considered as a part of their salary and charged as tax.
Gifts from family members are not subjected to tax.
If the gifts from family exceeds Rs.50000, they are subjected to tax under section 56(2) of Income Tax Act.
According to this section if the threshold of Rs.50000 is reached then entire value is taxable (Family Members)
A land or building received as a gift will be taxed if it's stamp duty exceeds Rs.50000.
Tax will be levied on the stamp duty value.
Wishing you a Happy Diwali.