6 ways to avoid tax on your Diwali Gifts

By Editorji News Desk
Published on | Nov 08, 2023

Gift from Employers

A gift below Rs 5,000 is exempted from taxation. Over Rs 5,000 is treated as part of your salary and taxed based on tax slab

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Gift from Relatives

These gifts are entirely exempted from tax, provided the donor qualifies as a relative defined for tax purposes

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Gift from Friends

Taxable when the aggregate value of gifts received during a year exceeds Rs 50,000 as they come under the category, 'income from other sources'

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Movable and Immovable Property Gifts

If the difference between the consideration and stamp duty is over Rs 50,000, the transfer is taxable

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Avoiding Gift Tax

The most effective way to sidestep gift tax is to avoid gifts in form of cash or property that exceed Rs 50,000

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Invest Gift amount

Invest the gift that is over Rs 50,000. This helps in saving taxes and generating tax free income

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