Income Tax Rules: How much tax is to be paid on wedding gifts, know the rules..

A lot of money is spent on weddings in India. You must have seen it. Often whatever relatives, friends, and other people come. Almost everyone brings gifts. Someone gives money as a gift. So someone gives expensive items as gifts. In such a situation, this question often comes to the minds of people whether any kind of tax is levied on the gifts received at the wedding or on the money received as a gift. Let us know what the income tax rules say regarding gifts received at weddings.

Wedding gifts are tax-free

According to the rules of the Income Tax Act, all types of gifts received at marriage are tax-free. But you have to keep the details of all the gifts received at the wedding. Due to this, you do not face any problems in the future. Along with this, you have to give information about gifts received in marriage while filing income tax returns. Along with this, you have to submit proof of your marriage. In which wedding card and wedding photos also have to be given.

You can take gifts only up to Rs 50,000

Where wedding gifts may be tax-free. But apart from this, you have to pay tax on other gifts. All gifts received above Rs 50,000 come under the income tax category. You have to pay tax on these under Section 56(2)(x) of the Income Tax Act, 1961. However, you do not have to pay tax on gifts received from your blood relative. Along with this, the Income Tax Act gives you tax exemption on gifts under Section 10 (23C) and Section 12A or 12AA.