1. Cash gifts from anybody on your wedding are not taxed, but you will have to prove it was a gift, which can be done by accepting cheques or bank transfer gifts.
2. When a woman receives gifts from her husband and parents-in-law, they are not taxed, but any income earned from investing this money is clubbed with the income of the giver.
3. Similarly, the income from any gift received by the husband from his wife will be clubbed with her income.
4. Open your minor kids' bank accounts for receiving cash gifts given to them, for investing in their own names, preferably in long-term balanced equity funds, with redemption only after they turn 18.
5. Gifting money to your own child above 18 and then investing it in the child’s name for tax-free gains is a perfectly legal strategy.
6. You can gift any amount to your child without any tax liability on you, but while gifting, make sure you do so through a cheque or a bank transfer, so that he can prove the source of the funds.
7. Gifts received from the employer not exceeding Rs.5000 are not taxable.
8. If you gift assets to your parents, who have no source of income, the income earned from such assets will be considered as their income, which can help you reduce your tax liability.
9. After excluding all exceptions, if the total value of your gifts exceeds Rs.50,000 in a year, you have to pay tax on the entire amount, not simply on the difference.
10. If you fail to carefully assess the gifts you have received in a year while filing your income tax return, not only will you have to pay the interest liability on your outstanding payments, but could also end up paying a fine of 1-3 times the amount of tax you were supposed to pay.
2. When a woman receives gifts from her husband and parents-in-law, they are not taxed, but any income earned from investing this money is clubbed with the income of the giver.
3. Similarly, the income from any gift received by the husband from his wife will be clubbed with her income.
4. Open your minor kids' bank accounts for receiving cash gifts given to them, for investing in their own names, preferably in long-term balanced equity funds, with redemption only after they turn 18.
5. Gifting money to your own child above 18 and then investing it in the child’s name for tax-free gains is a perfectly legal strategy.
6. You can gift any amount to your child without any tax liability on you, but while gifting, make sure you do so through a cheque or a bank transfer, so that he can prove the source of the funds.
7. Gifts received from the employer not exceeding Rs.5000 are not taxable.
8. If you gift assets to your parents, who have no source of income, the income earned from such assets will be considered as their income, which can help you reduce your tax liability.
9. After excluding all exceptions, if the total value of your gifts exceeds Rs.50,000 in a year, you have to pay tax on the entire amount, not simply on the difference.
10. If you fail to carefully assess the gifts you have received in a year while filing your income tax return, not only will you have to pay the interest liability on your outstanding payments, but could also end up paying a fine of 1-3 times the amount of tax you were supposed to pay.