Beware!
You may have
to pay tax on Diwali gifts!

Everyone enjoys receiving gifts on Diwali, but you might have to pay Income Tax on certain Diwali gifts.
What does the law say about Income Tax on Diwali?

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Income-Tax Act, 1961, says Diwali gifts priced above
Rs 50,000 from non-exempted friend will be taxed

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Income Tax on such gifts are
in addition to Diwali bonus, which are taxed under the head salaries

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Diwali gifts from employer

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Diwali gifts from friends

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Gifts received from employer

Any amount of money received

Specified movable property

Specified movable property received at a price lower than fair market value

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Spouse
Siblings
Cousins
Parents
Parents’ siblings
Lineal ascendant/descendant

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TV
Cars
Two-wheelers

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Non-Fungible Tokens (NFT)
or Virtual Digital Assets (VDA)
worth above Rs 50,000

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So be aware about
the tax component
when you receive
gifts this Diwali

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Beware!
You may have
to pay tax on Diwali gifts!

Everyone enjoys receiving gifts on Diwali, but you might have to pay Income Tax on certain Diwali gifts.
What does the law say about Income Tax on Diwali?

Income-Tax Act, 1961, says Diwali gifts priced above
Rs 50,000 from non-exempted friend will be taxed

Income Tax on such gifts are
in addition to Diwali bonus, which are taxed under the head salaries

Diwali gifts from employer

Gifts received from office above Rs 5,000 including bonuses

Types of gifts that are taxed

Diwali gifts from friends

Gifts of cash above Rs 50,000 are taxable. This takes in account all the gifts received in a year including on your birthday

Types of gifts that are taxed

Gifts received from employer

Any amount of money received

Specified movable property

Specified movable property received at a price lower than fair market value

Types of gifts that are taxed

Spouse
Siblings
Cousins
Parents
Parents’ siblings
Lineal ascendant/descendant

Diwali gifts received from
following relatives -

Types of gifts that
are not taxed

TV
Cars
Two-wheelers

Types of gifts that
are not taxed

Non-Fungible Tokens (NFT)
or Virtual Digital Assets (VDA)
worth above Rs 50,000

Tax on Crypto Diwali gifts

So be aware about
the tax component
when you receive
gifts this Diwali

Next Visual Story
Big Diwali Sale: Samsung, Nothing, Realme

Beware! You may have to pay tax on Diwali gifts!

Everyone enjoys receiving gifts on Diwali, but you might have to pay Income Tax on certain Diwali gifts.What does the law say about Income Tax on Diwali?

Income-Tax Act, 1961, says Diwali gifts priced above Rs 50,000 from non-exempted friend will be taxed

Income Tax on such gifts are in addition to Diwali bonus, which are taxed under the head salaries

Diwali gifts from employer

Gifts received from office above Rs 5,000 including bonuses

Types of gifts that are taxed

Diwali gifts from friends

Gifts of cash above Rs 50,000 are taxable. This takes in account all the gifts received in a year including on your birthday

Types of gifts that are taxed

Gifts received from employer Any amount of money received Specified movable propertySpecified movable property received at a price lower than fair market value

Types of gifts that are taxed

SpouseSiblingsCousinsParentsParents’ siblingsLineal ascendant/descendant

Diwali gifts received from following relatives -

Types of gifts that are not taxed

TVCarsTwo-wheelers

Types of gifts that are not taxed

Non-Fungible Tokens (NFT) or Virtual Digital Assets (VDA) worth above Rs 50,000

Tax on Crypto Diwali gifts

So be aware about the tax component when you receive gifts this Diwali

Next Visual Story Big Diwali Sale: Samsung, Nothing, Realme

Beware!
You may have
to pay tax on Diwali gifts!

Everyone enjoys receiving gifts on Diwali, but you might have to pay Income Tax on certain Diwali gifts.
What does the law say about Income Tax on Diwali?

Income-Tax Act, 1961, says Diwali gifts priced above
Rs 50,000 from non-exempted friend will be taxed

Income Tax on such gifts are
in addition to Diwali bonus, which are taxed under the head salaries

Gifts received from employer

Any amount of money received

Specified movable property

Specified movable property received at a price lower than fair market value

Spouse
Siblings
Cousins
Parents
Parents’ siblings
Lineal ascendant/descendant

Diwali gifts received from
following relatives -

Types of gifts that
are not taxed

TV
Cars
Two-wheelers

Types of gifts that
are not taxed

Non-Fungible Tokens (NFT)
or Virtual Digital Assets (VDA)
worth above Rs 50,000

So be aware about
the tax component
when you receive
gifts this Diwali

Next Visual Story
Big Diwali Sale: Samsung, Nothing, Realme