Gift tax under Section 56(2)(x)
When a gift is taxable income, the Rs 50,000 line, and the relative and occasion exemptions
India has no separate gift tax, but Section 56(2)(x) taxes certain gifts as income from other sources. If the aggregate of gifts you receive from non-relatives in a financial year exceeds Rs 50,000, the whole amount (not just the excess) is taxable. This covers money and specified property, immovable property, shares and securities, jewellery, art, bullion, and since the Finance Act 2022, virtual digital assets like crypto and NFTs. But gifts from a defined list of relatives, gifts received on the occasion of your marriage, and gifts by will or inheritance are exempt at any value. So the question is always: who gave it, what is it, and how much.
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When a gift is taxable
Under Section 56(2)(x), if the total value of gifts you receive from non-relatives in a financial year exceeds Rs 50,000, the entire amount is taxable as income from other sources, not just the part above Rs 50,000. It applies to money and to specified property: immovable property, shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, art and bullion, and, since the Finance Act 2022, virtual digital assets (crypto and NFTs). For immovable property received without consideration, the stamp-duty value is taxed if it exceeds Rs 50,000; for inadequate consideration, the shortfall is taxed where it exceeds both Rs 50,000 and a 10% safe-harbour tolerance.
What is exempt at any value
Several gifts are exempt regardless of amount.
tipA gift over Rs 50,000 from a friend or colleague is taxable in full, but the same gift from a parent, sibling or spouse, or any gift on your wedding, is tax-free at any amount. The relationship and the occasion decide it.
- Gifts from a relative (spouse; brother or sister; brother or sister of the spouse or of either parent; any lineal ascendant or descendant; and the spouses of these)
- Gifts received on the occasion of the recipient's marriage (from any donor)
- Anything received by will or inheritance, or in contemplation of death
- Gifts from a local authority, or from a fund or institution under Section 10(23C) or a 12A/12AB trust
- Property received on a partition of a Hindu Undivided Family
Crypto gifts and the separate VDA tax
Since the Finance Act 2022, virtual digital assets are treated as property for the gift rules, so a crypto or NFT gift over Rs 50,000 from a non-relative is taxable in the recipient's hands under Section 56(2)(x). Keep this separate from the tax on transferring a VDA: when you later sell or swap the gifted crypto, any gain is taxed at the flat 30% under Section 115BBH. So a gifted crypto can be taxed once on receipt (as a gift, if from a non-relative over Rs 50,000) and again on its later gain (under the VDA regime), two distinct charges.
warningCrypto and NFTs are property for gift tax now. A non-relative gifting you crypto worth over Rs 50,000 creates taxable income for you on receipt, separate from the 30% you pay on any gain when you later sell it.
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Source / notes
- Income-tax Act 1961 s.56(2)(x) (gifts taxable as income from other sources) (re-enacted in the Income-tax Act 2025)
- Income-tax Act 1961 s.2(41) (definition of relative) + s.10(23C)/12AB (exempt donors)
- Finance Act 2022 (virtual digital assets treated as property for gifts)
Frequently asked questions
Is a gift taxable in India?+
There is no separate gift tax, but Section 56(2)(x) taxes some gifts as income. If the gifts you receive from non-relatives in a financial year total more than Rs 50,000, the whole amount is taxable as income from other sources. Gifts from relatives, on your marriage, or by will or inheritance are exempt at any value. So it depends on who gave it and how much.
Are gifts from family members taxable?+
No. Gifts from a relative, which includes your spouse, siblings, your spouse's siblings, siblings of either parent, any lineal ascendant or descendant, and the spouses of these, are exempt from tax at any value. So money or property from a parent, child, sibling or spouse is tax-free regardless of amount, unlike a gift from a friend or colleague over Rs 50,000.
Is a wedding gift taxable?+
No. Gifts received on the occasion of the recipient's marriage are exempt under Section 56(2)(x), from any donor, relative or not, and at any value. This is a specific occasion-based exemption, so wedding gifts do not attract tax even if they come from friends and exceed Rs 50,000. Other occasions (a birthday, an anniversary) do not get this exemption.
Is gifted crypto taxable?+
It can be taxed twice. Since the Finance Act 2022, crypto and NFTs are property for the gift rules, so a virtual-digital-asset gift over Rs 50,000 from a non-relative is taxable in your hands on receipt under Section 56(2)(x). Separately, when you later sell or swap it, any gain is taxed at the flat 30% under Section 115BBH. A gift from a relative is exempt on receipt, but the 30% on a later gain still applies.
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