If you receive gift from someone it is clubbed with your income and you need to pay tax on it. This tax is called as gift tax.
This tax is applicable if gift amount or value is more than 50000 Rs/- in a year.
The year's last quarter is dotted with numerous festivals. It is also the marriage season. Giving/receiving gifts is integral to both. However, most people do not know that some gifts are taxable in the hands of recipients, a fact that may land them into trouble with the tax department. So, to make sure that you stay clear of tax troubles, we give you a low-down on rules that govern gift taxation.