NEW DELHI: Persons receiving gifts, in cash or kind, will have to pay tax, if the value exceeds Rs. 50,000, the Income Tax Department has said.
A notification issued by the Central Board of Direct Taxes, about three weeks ahead of Deepavali, said the norms would come into force on October 1. They would not apply to gifts received either by relatives or on the occasion of marriage. There would be no tax on gifts received by way of will, inheritance or in the event of death of the donor.
Those receiving gifts in excess of Rs.50,000 would have to show the value in the returns for 2010-11
Tax on gifts in excess of Rs.50,000
