Gifts given by Indian resident relatives and NRI relatives, i.e., parents, spouse, siblings, spouse’s siblings, heirs and spouse’s heirs will not be taxed.

Gifts received as an inheritance will not be taxed. The sale of the inherited property or shares can be taxed under capital gains.

Monetary rewards or scholarships given by educational institutions or local governments are exempted.

Gifts given from an NRI relative in the form of foreign currency are also exempted.

Gift tax is levied on: any gift or inheritance exceeding an amount of ₹50,000, any transfers made on movable property like shares, debentures and bonds, and any transfers made on immovable property like house and land.

Gifts are declared under the “Income from Other Sources” head while filing Income Tax Returns.

Gifts given by Indian resident relatives and NRI relatives, gifts received as inheritance, monetary rewards and scholarships are some exemptions to gift tax.