Lesson 51 of 53 · Tax on gifts · 3 min read · Reviewed 29 Oct 2026
Gifts from people who aren’t relatives are taxed in full once they total more than ₹50,000 in a year, under section 92 of the Income-tax Act 2025 (56(2)(x) of the 1961 Act). Gifts from relatives, gifts at your wedding and inheritances are exempt. Income from money you give your spouse is added to your own income.
Gifts from non-relatives over ₹50,000 in a year are taxed in full, not just the amount above ₹50,000.
The same test applies to property, shares, jewellery and art, at their value.
Gifts from relatives, at your wedding, or under a will are exempt. Birthday gifts from friends are not.
Key idea: Income earned on money gifted to a spouse is taxed in the giver’s hands, under section 99 (64 of the 1961 Act).
Tax rules as of 29 Oct 2026, checked on incometaxindia.gov.in.
Try the short quiz on this page to check what stuck.
Spouse, siblings, the spouse’s siblings, parents’ siblings, ancestors and descendants of either spouse, and their spouses.
It is added to the income of the parent who earns more, unless the child earned it by their own work.
Yes, gifts on the occasion of your marriage are exempt from anyone.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.