are wedding gifts taxable in india?
No wedding gifts are not taxable in general. There is a tax free limit of Rs 50000 in a financial year for general gifts. Any gift above this amount gets added to the income for tax calculation. However, for the gifts received during wedding are exempted from income tax. Although it is not taxable, one must understand that high value deposits or gifts may attract the attention of tax officer. The person may be served with notice on source of fund from income tax department. Therefore, it is advisable to declare the amount of gift received during the wedding while filing the income tax of the respective financial year. In case of high value gifts you may need to furnish the details of the person from whom you received a high value gift. These steps ensures safety. In most Indian families, the cash received gets adjusted with the expenses during the marriage. The challenge comes when one deposits a high value cash in his bank account. Transparency by providing details during tax filing will help.