Are Monetary Gifts Received From Abroad And From Friends Liable To Tax?

According to the information available with the Income Tax Department, if the aggregate value of monetary gift received during the year by an individual or Hindu Undivided Family (HUF) exceeds Rs. 50,000 and the gifts are not covered under the exceptions prescribed in the preceding FAQ, then gifts, whether received from India or abroad, will be charged to tax.

The Sum of money received without consideration by an individual or HUF is chargeable to tax if the aggregate value of such sum received during the year exceeds Rs. 50,000, while gifts received from relatives are not charged to tax. However, a friend is not a relative as defined in the list and hence, gifts received from friends will be charged to tax. The important point to be noted in this regard is the "aggregate value of such sum received during the year". The taxability of the gift is determined on the basis of the aggregate value of the gift received during the year and not on the basis of individual gifts. Hence, if the aggregate value of gifts received during the year exceeds Rs. 50,000, then the aggregate value of such gifts received during the year will be charged to tax.

Sum of money received without consideration by an individual or HUF is charged to tax if the aggregate value of such sum received during the year exceeds Rs. 50,000. Once the aggregate value of monetary gift received during the year exceeds Rs. 50,000, then the aggregate value of gift received during the year will be charged to tax. Stamp duty of immovable property is chargeable to tax if immovable property is received by an Individual or HUF without any consideration and the stamp duty value exceeds Rs. 50000.

However, in the following cases nothing will be charged to tax in respect of immovable property received on or after 01/10/2009 without any consideration, even if the stamp duty value exceeds Rs. 50,000, the Income Tax Department informs.

Gifts received from relatives are not charged to tax. According to the department relative means, spouse of the individual, brother or sister of the individual, brother or sister of the spouse of the individual, brother or sister of either of the parents of the individual, any lineal ascendant or descendent of the individual, any lineal ascendant or descendent of the spouse of the individual. Importantly, a friend is not a relative as defined in the above list and hence, gifts received from friends will be charged to tax.