YOU CAN BE TAXED ON CERTAIN DIWALI GIFTS RECIEVED

The season of Diwali brings along with lights, lots of gifts and happiness

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But this gifts could cost you tax.

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Gifts from friends relatives and employers are taxed different.

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Tax on gifts received from Employers are tax-exempt if their total amount is less than Rs.5000.

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Tax on gifts received in a financial year from Employers are tax-exempt if their total amount is less than Rs.5000

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Any gifts you receive over Rs.5000 will be added to your income and taxed as per your tax bracket.

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Some employers give Diwali bonus instead of gifts. This will be considered as a part of their salary and charged as tax.

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Gifts from family members are not subjected to tax.

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If the gifts from family exceeds Rs.50000, they are subjected to tax under section 56(2) of Income Tax Act.

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According to this section if the threshold of Rs.50000 is reached then entire value is taxable (Family Members)

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A land or building received as a gift will be taxed if it's stamp duty exceeds Rs.50000.

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Tax will be levied on the stamp duty value.

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Wishing you a Happy Diwali.

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