Receiving A Gift Above Rs 50,000? Here’s When It Becomes Taxable And How Section 87A Can Cut Your Tax Bill

A valuable gift can brighten anyone's day, but it is worth understanding the tax implications before celebrating. While many gifts are completely exempt from tax, others may be treated as taxable income under the Income Tax Act if they are received from certain individuals and exceed a prescribed value. The applicable tax also depends on your overall income and the tax regime you have chosen. According to tax experts, knowing these provisions in advance can help taxpayers avoid unexpected liabilities and make informed financial decisions.