Why gifts can come with strings attached to tax

We always feel that gifts, whether in the form of gold or cash, are tax free. Yet, the Income Tax Department has clear-cut regulations on when a gift can be regarded as taxable. If you receive money, gold, or jewellery beyond a certain limit from someone who is not a "relative" as the tax legislation understands, then it can be your income and taxed accordingly. So, while a wedding gift or a Diwali envelop is sweet of taste, the taxman may still have an eye on a portion of it if the amount is sizeable.

What is a tax-free gift

Gifts from close relatives — spouse, children, parents, siblings, or even in-laws — are completely exempt from tax, regardless of the value. The same holds for gifts on wedding occasions or through inheritance. But if

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