Hello from the Business Desk in New Delhi. The wedding season is here, and in India, weddings are celebrated with lots of excitement. During weddings, not only the bride and groom but also their families receive gifts.
These gifts can include money, valuable jewelry, cars, properties, and more. People often wonder about the taxes on these gifts, so let’s discuss the rules according to the Income Tax Act.
How much tax is there?
The gifts that the bride and groom receive during the wedding are tax-free. This means that items like gold, property, and other things do not have any tax.
However, it’s important to note that gifts received by the parents of the couple are not tax-free.
What about the gift limit?
There is no limit on the value of gifts given at a wedding. This means that anyone can give a gift of any value, and all such gifts are tax-free. However, the person giving the gift needs to inform the Income Tax Department about it.
Sometimes, the bride and groom may also need to provide information about the gifts they receive. Therefore, experts suggest keeping proof of these gifts, and photographs can serve as evidence.
Is there tax on gifts after marriage?
Even if the bride and groom receive gifts after getting married, those gifts are still tax-free. According to income tax rules, even gold jewelry given as a gift after marriage does not incur any tax.
How much gold can be kept without proof?
As per Indian law, a married woman can keep up to 500 grams of gold without any documents. Without marriage, she can keep 250 grams of gold. In contrast, men can keep only 100 grams of gold without any documentation.
