Gift From Relative Tax Calculator
What Is This Tool & Who Should Use It?
Gifts from relatives like parents, spouse, siblings, and children are special under Indian tax law—they come with an exemption of up to ₹50,000. Our gift from relative tax calculator helps you understand when a gift becomes taxable and calculates the tax liability on amounts exceeding the exemption threshold.
Who should use this: Anyone earning income from this source in India needs to understand their tax obligations and calculate their liability accurately.
Why This Income Type Confuses Many Users
People are often confused whether gifts are taxable. The answer depends on whether the gift is from a relative and how much it is. Additionally, the definition of "relative" under tax law is specific, and casual gifts versus formal transfers create confusion about what qualifies for exemption.
How This Tool Works (Simple Explanation)
This calculator takes your gift amount and applies the ₹50,000 exemption available for gifts from specified relatives. If your gift exceeds this, the excess amount is added to your income and taxed as per your tax slab. The tool shows your taxable gift amount and final tax liability.
Step-by-Step: How to Use This Tool Correctly
- 1.Enter your residency status
- 2.Input the total value of gift received from relatives during the financial year
- 3.The calculator applies the ₹50,000 exemption automatically
- 4.Any amount above ₹50,000 is added to your taxable income
- 5.See your final tax liability after slab calculation
Real-Life Situations Where This Tool Helps
- ✓Parents gifting property or money to their adult children
- ✓Spouse receiving gifts during marriage or anniversary
- ✓Siblings gifting gold or cash for major life events
- ✓Grandparents supporting education or weddings of grandchildren
- ✓Family members receiving inheritance or large gifts
Common Mistakes Users Make
- ⚠Assuming all gifts are tax-exempt when only ₹50,000 per donor is exempt per financial year
- ⚠Not realizing that gifts from multiple relatives are counted separately—each donor has their own ₹50,000 limit
- ⚠Confusing gift exemption with other income sources in total tax calculation
- ⚠Not reporting the gift in ITR even when it's below ₹50,000 (though technically not taxable, disclosure is important)
- ⚠Mixing gift from relatives with gift from non-relatives which has different tax treatment
How This Tool Makes Tax Filing Easier & Stress-Free
This calculator removes the confusion about gift taxation. You instantly see how much of your gift is exempt and how much becomes taxable. This helps families plan major financial moves like property transfers or cash gifts with clarity about tax implications, ensuring you stay compliant and avoid penalties.
Data Privacy & Security
Your financial information is completely safe with us. Here's how we protect your privacy:
- ✓No data storage: We do not store, save, or archive your personal or financial data
- ✓No accounts needed: You don't need to create an account or login
- ✓Session-based calculations: All calculations are temporary and performed in your browser only
- ✓Safe for all users: Whether you're a salaried professional, freelancer, or NRI, your privacy is our priority
Related Tools You Might Need
Depending on your financial situation, you may benefit from our other specialized calculators:
Gift from Non-Relative Calculator
Calculate tax on gifts from friends and non-relatives (fully taxable)
Rent Income Tax Calculator
Calculate tax on rental income from property
Capital Gains Calculator
Calculate tax on sale of property gifted to you
Frequently Asked Questions
Are gifts from parents taxable in India?+
Gifts from parents to children are exempt up to ₹50,000 per financial year. Beyond this, the excess is added to your income and taxed as per your slab rate. However, gifts from parents for certain purposes (higher education, marriage) get additional exemptions.
What is the ₹50,000 exemption on gifts?+
Under Section 56(2)(vi), gifts from specified relatives are exempt up to ₹50,000 per donor per financial year. This means if your mother gifted ₹1 lakh, only ₹50,000 is exempt and ₹50,000 is taxable. If both parents gift ₹50,000 each, the total ₹1 lakh is exempt.
Who qualifies as a 'relative' for gift exemption?+
Relatives include spouse, parents, grandparents, siblings, children, grandchildren, lineal ascendants, lineal descendants, and spouse's parents. Cousins, uncles, aunts, and friends don't qualify as relatives for this exemption.
Is gift from friend's parents taxable?+
Yes, gifts from non-relatives are fully taxable from the first rupee. There's no exemption for gifts from friends, colleagues, or non-related individuals. This can result in significant tax liability.
How is taxable gift computed in my income?+
The taxable gift amount (gift minus ₹50,000 exemption) is added to your other income like salary, interest, etc. Your total income is then taxed as per the applicable slab rates.
Do I need to report gift in ITR even if below ₹50,000?+
Technically, exempt gifts don't need to be reported. However, it's prudent to disclose them to show the source of funds, especially if the gift is substantial.
Ready to Calculate Your Tax Accurately?
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