Income Tax News: Presents given to a newlywed couple in celebration of their union are not subject to taxes. The exclusion is not exclusive to presents from family members. As a result, presents given to a newlywed couple by friends or non-family members will likewise not be subject to taxes.
Wedding Gifts Beyond Monetary Value
Taxes do not apply to gifts given for the wedding, regardless of their cost. Money, property, jewellery, technology, moveable or immovable property, currency, and other items can all be given as gifts. Let’s explore the idea of property in more detail, which includes the following:
- Jewelry
- Land and building (immovable)
- Shares and securities
- Drawings
- Paintings
- Sculpture
- Any work of art
- Archeological collection
- Bullion
Exempted Gifts
- A present from a family member
- Cash that was given to the person in honour of their marriage. Other than marriage, no other event exists where a recipient of a monetary gift is exempt from taxation. As a result, cash gifts given on special occasions like birthdays and anniversaries will be subject to taxes.
- money inherited or received through a will.
- Funds received with the expectation of the payer’s or donor’s death.
- Cash obtained from a local government [as defined in the Income-tax Act’s Explanation to section 10(20)].
- Funds from any trust or institution mentioned in Section 10(23-C), university, hospital, or other medical facility; or any other educational institution.
- funds obtained through a trust or organisation that is authorised by section 12AA or section 12AB.
Tax-Free Gifts Under the Income Tax Act of 1961
According to the Income Tax Act of 1961, a couple is exempt from paying taxes on any gifts they receive on their wedding anniversary. Only gifts from relatives are exempt from taxation when they are received for purposes other than the celebration of marriage. If such gifts are valued less than Rs. 50,000 and are received from non-relatives, they are exempt. All other cases will result in an income tax charge for gifts received other than on the occasion of marriage.
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