Diwali is over, as are the fireworks. But the joy of gifting continues. For, the wedding season is set to begin from 23 November, and will last till 15 December. According to the research arm of Confederation of All India Traders, there will be a record 3.5 million weddings taking place in India this year.
Marriages, one of the biggest financial goals of most Indian families, is a reason for great celebration. On this occasion, newlyweds, as well as their families, usually receive gifts from well-wishers. Such gifts can, however, attract the provisions of the income tax laws.
Relatives vs friends
According to Indian tax rules, gifts received by an individual on any occasion, including a wedding, are exempt from tax totally but those from friends are tax-free only till the limit of ₹50,000, on occasions other than wedding. So, if a gift given by any friend on a birthday or anniversary is valued at ₹1 lakh, the entire ₹1 lakh is taxable under ‘income from other sources’.
Do note that marriage is the only occasion when tax is exempted totally on all gifts received by the bride and groom from both relatives and friends.
In Indian weddings, even close relatives of the married couple receive gifts. In their case though, gifts valued above ₹50,000 will be considered as ‘income from other sources’ and the recipients will be taxed as per the income slab rate on the full value of the gift.
Marriage ceremonies
Denne historien er fra November 14, 2023-utgaven av Mint Mumbai.
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Denne historien er fra November 14, 2023-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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