ITR 2026: Report Gifts & Inheritance — Pay ₹0 Tax?
The new ITR forms for 2025-26 now let you separately report receipts like gifts from relatives, inherited property, and rural agricultural land sales — these are not taxable income, but must be disclosed correctly to avoid tax department notices.
A ₹5 lakh gift from your parents is tax-free — but one wrong ITR entry can trigger a scrutiny notice
Gifts and inherited property you receive may attract zero tax if reported correctly
Key Takeaways
Check if you received any gifts, inheritance payouts, or rural agricultural land sale proceeds in FY2025-26 — list these separately in the new ITR dropdown, not under taxable income.
Collect documentary proof for every exempt receipt: gift deed, will or inheritance document, or land sale agreement — keep these ready in case the tax department asks.
If you sold urban property or received gifts from non-relatives above ₹50,000, consult a CA — these are taxable and must NOT be filed under the exempt receipts section.
The new ITR forms for 2025-26 now let you separately report receipts like gifts from relatives, inherited property, and rural agricultural land sales — these are not taxable income, but must be disclosed correctly to avoid tax department notices.
Here's what happened: Updated ITR forms for FY2025-26 now include a dedicated dropdown for 'Receipts not in the nature of income' — covering gifts, inheritance, and rural land sale proceeds.. Earlier ITR forms had no clear separate field for such exempt receipts, forcing taxpayers to either skip them or awkwardly club them with other income, risking scrutiny.. Gifts received from specified relatives (parents, spouse, siblings) are fully exempt under Section 56(2) of the Income Tax Act, regardless of the amount — but must still be disclosed..
What you should do: Check if you received any gifts, inheritance payouts, or rural agricultural land sale proceeds in FY2025-26 — list these separately in the new ITR dropdown, not under taxable income.. Collect documentary proof for every exempt receipt: gift deed, will or inheritance document, or land sale agreement — keep these ready in case the tax department asks.. If you sold urban property or received gifts from non-relatives above ₹50,000, consult a CA — these are taxable and must NOT be filed under the exempt receipts section..
Gifts received on your wedding day from anyone — relatives or friends — are fully tax-free with no upper limit. Keep your wedding invitation as supporting proof.
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- [1]“ITR filing 2026: Gifts, inheritance and rural agricultural land sale receipts can now be reported separately” mint - money · 3 Jul 2026
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