What is a Gift Tax?

Let us understand what gift tax means.

Any gift or inheritance exceeding an amount of ₹50,000 will be taxed.
Any transfers made on movable property like shares, debentures and bonds will attract a gift tax.
Any transfers made on immovable property like house, land, etc. will attract a gift tax.

Pro tip:

The monetary value of the gift is determined on the date of the transfer or the date on which the gift was given.

Pro Tip

For calculating the capital gains tax on sale of gift by receiver, the original purchase date of the property (before it was gifted) is considered.

Quick Tip

Gifts are declared under the ‘Income from Other Sources‘ head while filing your Income Tax Returns.

To track your progress

What is a Gift Tax?

Pro tip:

Pro Tip

Quick Tip

Let's see what exemptions are allowed under Gift Tax in the next section