Tax · Guide

Gifts and income tax: what is exempt and who is a relative

Short answer

Gifts from relatives are exempt from income tax with no upper limit. Gifts from anyone else are exempt only if their total in the year is Rs 50,000 or less; above that, the entire amount is taxable as income. Gifts received on your marriage, and anything inherited or received under a will, are exempt whoever gives them.

There is no separate gift tax in India. Instead, gifts can be taxed as income of the person who receives them. Whether a gift is taxed depends on who gave it, the occasion, and the total from non-relatives in the year.

By FinancePaisa Editorial Team · Research & editorialUpdated 22 October 2026 · 2 min read

On this page (5 sections)

Who counts as a relative for gift tax?

Your spouse.
Your brother or sister, and your spouse's brother or sister.
Your parents' brothers and sisters.
Any lineal ascendant or descendant of you or your spouse: parents, grandparents, children, grandchildren.
The spouse of any person above.

Worked example: gifts in one year

The two non-relative gifts add up to Rs 70,000. Because that is over Rs 50,000, the full Rs 70,000 is taxed as income from other sources at your slab rate.

Gift	From	Taxable?
Rs 5,00,000	Your father's brother	No: a parent's sibling is a relative
Rs 30,000	A friend	Yes: gifts from non-relatives total Rs 70,000, above Rs 50,000
Rs 40,000	A cousin	Yes: a cousin is not a relative here
Rs 1,00,000	Guests at your wedding	No: marriage gifts are exempt

Rs 5,00,000
From
Your father's brother
Taxable?
No: a parent's sibling is a relative
Rs 30,000
From
A friend
Taxable?
Yes: gifts from non-relatives total Rs 70,000, above Rs 50,000
Rs 40,000
From
A cousin
Taxable?
Yes: a cousin is not a relative here
Rs 1,00,000
From
Guests at your wedding
Taxable?
No: marriage gifts are exempt

Are gifts of property, shares or jewellery taxed?

The same rule covers gifts in kind, such as land, a house, shares or jewellery, using their value instead of a cash amount. From a relative, they are exempt. From non-relatives, they count towards the Rs 50,000 limit.

Frequently asked questions

Is a gift from a cousin taxable?

It counts as a gift from a non-relative. If all such gifts in the year total more than Rs 50,000, the whole amount is taxable.

Is a gift from my wife's brother exempt?

Yes. Your spouse's brother or sister is a relative under the rule.

Does the person giving the gift pay tax?

No. India has no gift tax on the giver. Watch for clubbing, though: income earned on money gifted to a spouse is added to the giver's income.

Shaadi ke gift par tax lagta hai? Are wedding gifts taxed?

No. Gifts received on the occasion of your marriage are exempt, whoever gives them.

Sources & references

Gifts received from relatives are exempt from tax: who is a relative? — Income Tax Department (checked 22 Oct 2026)

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