Gift-in-Kind

Gift-in-Kind – A Gift-in-Kind refers to a non-monetary gift given in the form of goods, services, or property instead of cash. These gifts hold monetary value and can include items such as vehicles, jewelry, real estate, or stocks. In taxation, the fair market value of such gifts is often considered to determine whether they are taxable under the Income Tax Act. In India, gifts received without adequate consideration may be taxable in the hands of the recipient, depending on their nature, value, and relationship with the donor. Gifts from specified relatives or on certain occasions (like marriage) are exempt from tax.

Example: If an individual receives a car worth ₹10 lakh in FY 2022–23 as a gift, its value may be assessed and taxed in AY 2023–24, unless exempt under specific provisions.