Gifts Over ₹50K: What Your ITR Must Disclose
If friends or non-relatives gifted you cash or valuables worth over ₹50,000 last year, it is taxable income. Gifts from close relatives are exempt — but you still need to report both in your ITR for AY 2026-27.
A ₹51,000 shagun from a friend costs you ₹15,600 in tax — more than 3 months of chai!
Gifts above this from friends are fully taxable in your hands
Key Takeaways
List every gift received in FY 2024-25 — cash, UPI transfers, jewellery, or property — and identify the relationship with the giver.
Check whether your giftor qualifies as a 'relative' under the Income Tax Act definition before assuming it is exempt.
Report all gifts in the correct schedule of your ITR even if exempt — omitting them can trigger a scrutiny notice from the Income Tax Department.
If friends or non-relatives gifted you cash or valuables worth over ₹50,000 last year, it is taxable income. Gifts from close relatives are exempt — but you still need to report both in your ITR for AY 2026-27.
Here's what happened: Cash, jewellery, or property gifts exceeding ₹50,000 from non-relatives in a financial year are taxable as 'Income from Other Sources'.. Gifts from specified relatives — parents, spouse, siblings, and their spouses — remain fully tax-exempt with no upper limit.. ITR forms for AY 2026-27 now include a dedicated field requiring disclosure of both taxable and exempt gifts received during the year..
What you should do: List every gift received in FY 2024-25 — cash, UPI transfers, jewellery, or property — and identify the relationship with the giver.. Check whether your giftor qualifies as a 'relative' under the Income Tax Act definition before assuming it is exempt.. Report all gifts in the correct schedule of your ITR even if exempt — omitting them can trigger a scrutiny notice from the Income Tax Department..
Wedding gifts from anyone — relative or friend — are fully tax-free regardless of amount. Keep the wedding invitation card as proof of the occasion if ever questioned.
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- [1]“ITR filing 2026: Do you need to disclose both taxable and exempt gifts received from friends and family?” mint - money · 24 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.