Simple trick to save your crores of tax on the Occasion of Marriage

Описание: What are the Taxation rules on wedding gifts?
The gifts received by the newly wed couple from the immediate family or relatives are not taxable in India. The gifts can be in the form of house, property, cash, jewellery or stock or more are exempt from taxation. This rule is stated under Section 56 of the Income Tax Act.

For example: If your friend or family members or relatives or any other person gifts anything on the occasion of your marriage then it will not be taxable.

What are the different types of wedding gifts?
Gifts received on the wedding regardless of their value are exempt from taxation. The gift must be received from family members, relatives or friends. The gifts that are received can be in the form of cash, property, jewellery, electronics, moveable property or immovable property and so on.

Let us learn more about the term property which includes the following:
Land and building (immovable)
Jewellery (Jewellery includes ornaments or utensils made of gold, silver, platinum or any other precious metal whether or not attach any precious or semi-precious stone)
Shares and securities (Securities Include debentures, bonds etc)
Bullion (Gold And silver in their purest form)
Drawings
Archeological collection
Paintings
Sculpture
Any work of art
The gifts are divided in two head:

Exempted Gift:
Any gift received with value upto Rs 50000 in one year is not taxable.
Any sum of amount received as gift from following without consideration are also not income :

i. Gift Received from Relative
Any sum of money or kind received as a gift from relatives will not be taxable at all means there is no limit specified for amount of gift received by relative hence any amount received by relatives is not taxable For example :
If your brother gives you Rs 50, 00,000 then it will not be taxable.

ii. Gift received On occasion of the marriage of the individual
Gift received by any person (without limit) on the occasion of the marriage is tax free in the hands of the individual.
For example: If your friend or relative or any other person gifts you on your marriage then nothing will be taxable.

iii. under a Will or by way of inheritance;

iv. in contemplation of death of payer;

v. from local authority as defined in Explanation to section 10(20);

vi. educational or medical institution or fund etc. referred to u/s. 10(23C);

vii. trust or institution registered u/s. 12AA.

viii. by any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or

ix. by way of transaction not regarded as transfer under clause (i) or 11[clause (iv) or clause (v) or] clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause (vic) or clause (vica) or clause (vicb) or clause (vid) or clause (vii) of section 47; or

x. from an individual by a trust created or established solely for the benefit of relative of the individual.

What is a Taxable gift?
When any amount received as gifts exceeds Rs 50000 (from other than specified relatives) than whole received amount will be taxable or

Any immovable property is received without consideration if stamp duty value of such property is more than Rs.50000/- than stamp duty value of such property will be taxable.
For example:
If consideration is paid 120000 and stamp duty value is 200000 then 80000 will be chargeable under the head of other sources.

If any movable property is received without consideration of which aggregate fair market value is more than Rs.50000/- then tax will be charged on aggregate fair market value of movable property. For example:
If any Gold Jewellery received of value Rs 1050000 for consideration 200000 then the whole 850000 will be taxable in the hands of the recipient.

Gifts received from immediate family
The gifts from immediate family such as parents, spouses, siblings are exempt. For example if your parents gift you Rs 10 lakh in your account as a wedding gift, it will not be charged with any tax as they are your lineal ascendants.