Gifting Money or Property? Know the Tax Rules to Avoid Surprises!

Gifting money, gold, shares, or property is common — especially before March 31 for tax planning or asset transfers. But many don’t know that gifts can be taxable, unless handled correctly.

Here’s what’s taxable, what’s exempt, and how to gift smartly in 2025.
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1. Gifts from Relatives = Fully Exempt

The following people are covered under the “relative” exemption:

Parents

Siblings

Spouse

Children

Grandparents

Daughter-in-law/Son-in-law

Brother/sister of self or spouse

No tax, no limit — even ₹50 lakh is exempt if given to/from a relative.

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2. Gifts from Non-Relatives = Taxable if > ₹50,000

If you receive cash, property, or jewelry worth more than ₹50,000 from someone who’s not a relative:

The entire amount becomes taxable under “Income from Other Sources”

Applies to cash, gold, shares, movable and immovable property
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3. Property Gifts — Tax on Stamp Duty Value

If property is received without consideration (free), and stamp duty value > ₹50,000 → taxable

If property is sold at a deep discount (say ₹80L property sold at ₹20L), difference can be taxed as gift

4. Wedding Gifts = 100% Tax-Free

Any gift received on the occasion of your marriage — from anyone — is fully exempt, regardless of value or relation.

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5. Document It Properly

Use a gift deed for large transfers

Mention PAN of both parties if amount > ₹2L

For property, register with proper stamp duty (gift deed attracts less than sale deed)