Gift Tax Calculator
Calculate tax liability on gifts received under Section 56(2)(x) of Income Tax Act, 1961
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How to Use the Gift Tax Calculator – Step-by-Step Guide
The Gift Tax Calculator helps you determine whether a gift (cash, property, or assets) is taxable in India as per Income Tax rules. Follow these simple steps to calculate your tax liability:
Step 1: Enter Gift Details
- Select Gift Type: Choose between Cash, Property, or Other Assets.
- Enter Gift Value: Input the total value of the gift received (in ₹).
- Relationship with Donor: Select your connection with the giver (e.g., Relative, Non-Relative, Employer, etc.).
(Taxability varies based on the donor’s relation to you under Section 56(2)(x) of the Income Tax Act.)
Step 2: Check Exemptions (If Applicable)
- Gifts from relatives (parents, siblings, spouse, etc.) are fully exempt.
- Gifts up to ₹50,000 per year from non-relatives are tax-free.
- Marriage gifts and inheritance are not taxable.
Step 3: Calculate Gift Tax in India
- Click “Calculate Tax” to see if your gift is taxable.
- If the gift exceeds exemption limits, the calculator will show:
- Taxable Gift Value
- Applicable Tax Rate (as per your income slab)
- Total Tax Liability
Step 4: Save/Download Results
- Use the “Download Report” option to save calculations for filing ITR.
- For further clarification, refer to the FAQ section or consult a tax expert.
Important Notes:
✔ Tax-Free Gifts: From relatives, up to ₹50K from others.
✔ Taxable Gifts: Above ₹50K from non-relatives are added to income.
✔ Property Gifts: Stamp duty value is considered for tax calculation.
This gift tax calculator ensures 100% accuracy as per the latest Indian tax laws. Try it now for free this Gift Tax Calculator for calculating gift tax in India!
Gift Tax Exemption Relative List
Under the Gift Tax Act in India, gifts made to certain relatives are exempted from gift tax. These exemptions are provided to encourage the transfer of assets within families. The relatives who are exempt from paying gift tax are defined as per the provisions of the Income Tax Act, 1961, under Section 56(2)(x).
Here’s a list of relatives to whom gifts are exempt from tax:
- Spouse
- Parents (including both father and mother)
- Children (including both sons and daughters, and their spouses)
- Siblings (brother and sister)
- Grandparents (both maternal and paternal)
- Grandchildren
- Mother-in-law and Father-in-law
- Brother-in-law and Sister-in-law
- Son-in-law and Daughter-in-law
Gifts received from these relatives are exempt from tax, regardless of the amount. However, it’s important to note that the term “relatives” is strictly defined, and for the gift tax to be exempt, the gift must be from these specified individuals.
If gifts are received from people other than these relatives, they may be subject to tax if the value exceeds ₹50,000 in a financial year (under Section 56(2)(x)). For calculate gifts given by others, you can use the gift tax calculator
1. Is gift taxable in India?
Yes, gifts exceeding ₹50,000 from non-relatives in a financial year are taxable under Section 56(2)(x) of the Income Tax Act. Gifts from relatives (parents, spouse, siblings, etc.) are fully exempt.
2. What is the gift tax exemption limit in India?
From relatives: No limit (fully exempt).
From non-relatives: Up to ₹50,000 per year is tax-free. Beyond this, the entire amount (not just the excess) is taxable.
3. Who is considered a ‘relative’ for gift tax exemption?
As per the Income Tax Act, relatives include:
Spouse, parents, siblings, and their spouses.
Lineal ascendants (grandparents) and descendants (children, grandchildren).
4. Are cash gifts from parents taxable?
No, cash or property gifts from parents (or any relative) are 100% tax-exempt, regardless of the amount.
5. What if I receive a foreign gift or money from abroad?
Gifts from NRI relatives are tax-free.
Gifts from foreign friends/entities exceeding ₹50,000 are taxable under Income from Other Sources.
RBI compliance may apply for large foreign gifts.
6. Are marriage gifts taxable?
No, gifts received during marriage (cash, jewelry, or property) are fully exempt from tax, irrespective of the amount or donor.
7. Is a gift from a friend taxable in India?
If the total value of gifts from a friend (non-relative) exceeds ₹50,000 in a year, the entire amount (not just the excess) is taxable as “Income from Other Sources.”
8. Do I need to report tax-free gifts in my ITR?
While tax-free gifts (from relatives or below ₹50,000) need not be declared, it’s advisable to mention them in your Income Tax Return (ITR) for transparency.