Gift Tax

Gift Tax – Gift tax is a tax imposed on the transfer of assets or money from one individual to another without adequate consideration. In India, gifts received under certain circumstances are taxable under the Income Tax Act, and the tax liability is generally borne by the recipient. Key Features: Applies to monetary gifts, property, or other valuables. Certain exemptions exist, such as gifts received from close relatives or gifts below a specified monetary threshold. Tax is levied in the Assessment Year (AY) corresponding to the Financial Year (FY) in which the gift was received.

Example: If an individual receives a gift of ₹3 lakh in FY 2022–23, it is assessed and taxed in AY 2023–24, subject to exemptions and applicable provisions. 124 Words