Is gift money taxable in India?
Gifts are taxable under Section 56(2) if the total value received from non-relatives in a year exceeds ₹50,000 — then the whole amount is taxed as 'income from other sources' at your slab. But gifts from specified relatives, gifts received on your marriage, and gifts through a will or inheritance are fully exempt, regardless of value.
1When gifts are taxed
If you receive cash or assets worth more than ₹50,000 in aggregate from non-relatives (friends, etc.) in a financial year, the entire amount is taxable. Property gifted below stamp-duty value can also be taxed on the difference.
2What's exempt
Gifts from relatives (spouse, parents, siblings, lineal ascendants/descendants and a few others), gifts on the occasion of your marriage, and anything received under a will or inheritance are exempt without any limit.
Frequently asked questions
Is money gifted by parents taxable?
No — gifts from specified relatives, including parents, are fully exempt from tax regardless of the amount. The ₹50,000 limit applies only to gifts from non-relatives.
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General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.