• Money received by cash, draft, cheque, bank transfer, UPI payments, etc.

In some cases, the income generated from a gift may be added to the income of the person giving the gift. Suppose you gift Rs.2 lakh to your spouse or minor child, and they invest it in an FD. Then the interest earned from it will be clubbed with your income and taxed.

Suppose you transfer any house property to your spouse, you will be deemed to be the owner of the property transferred, and any rental income from it shall be taxable in your hands.

Say, you gift your spouse Rs.5 lakh via cheque to invest in their business and they put in an additional Rs.5 lakh. If the business incurs a loss of Rs.2 lakh, you can claim the proportionate loss of Rs.1 lakh in your ITR.

This is regardless of the amount that is gifted. Such relatives are specified as:

If the value of gifts received from non-relatives in a financial year exceeds Rs.50,000, the entire amount is taxable as ‘Income from other sources’.

The aggregate value of gifts is taxable if it is more than Rs.50,000. For instance, A receives a gift from B worth Rs.20,000 and from C worth Rs.40,000. As the aggregate value has crossed the threshold of Rs.50,000, A will have to pay tax on the total amount of Rs.60,000.

The fair market value (FMV) of gifts like jewellery, shares, art, bullion, such virtual digital assets etc., above Rs.50,000 will be taxed.

The stamp duty value of gifted property exceeding Rs.50,000 will be taxable. If A gets a flat worth Rs.50 lakh (according to circle rates), but pays only Rs.30 lakh for it, the excess Rs.20 lakh would be considered a taxable gift. However, if the difference between the actual value and stamp duty value is less than Rs.50,000, the transfer will not be a taxable gift.