New Delhi: Weddings in India are vibrant celebrations, brimming with music, rituals, lavish meals, and generous gifts. Whether it’s cash-filled envelopes, gold jewellery, or even a bank transfer, giving and receiving gifts is an age-old tradition that adds to the joy of the occasion. But while these tokens of love are cherished by families, the tax department sees them a little differently as potential income. That means some wedding gifts may need to be declared in your Income Tax Return (ITR). Here’s what you need to know.
Gifts aren’t just about wrapping paper and warm wishes as under Indian tax rules, they carry legal weight too. Whether it’s a bundle of cash, a sparkling necklace, shares in a company, or even a piece of land. ()
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Good news — not all wedding gifts are taxable! In fact, under Section 56 of the Income Tax Act, 1961, most gifts you receive on your wedding whether it’s cash, jewellery, or even a bank transfer are completely tax-free.
Here’s when wedding gifts are exempt from tax:
– Gifts from relatives (no limit)
– Gifts up to Rs 50,000 from non-relatives
– Gifts received through a will or inheritance
– All gifts received on the occasion of your marriage
Yes and this is where many newlyweds slip up. Even though wedding gifts are tax-exempt, you’re still expected to report them in your Income Tax Return (ITR). The tax department sees these as “Income from Other Sources,” and depending on your situation, you may need to file ITR-2 or ITR-3. ()
– Try to deposit any cash gifts close to the wedding date
– Keep a record of who gave what — whether it’s cash, jewellery, or a bank transfer
– Doing this not only keeps you tax-compliant but also makes filing your ITR much smoother.
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