Are wedding gifts tax-free or taxable in India? Here's the answer

In India, weddings go beyond rituals — they're grand social events marked by generous gifting. But for the tax department, these lavish presents aren’t just goodwill gestures; they’re potential taxable income that must be declared while filing your Income Tax Return (ITR).

Gifts are an inseparable part of Indian weddings. But when it comes to taxes, who gifted what — and how much — can change how it’s treated in your ITR.

Under Indian tax laws, a gift is defined as a voluntary transfer of movable or immovable property — this includes everything from cash and gold to stocks, jewellery, or even real estate.

Can wedding gifts be taxed?

Not all gifts are taxed. Under Section 56 of the Income Tax Act, 1961, wedding gifts — whether in cash or kind — are exempt from income tax. This includes gifts received through UPI or bank transfers.

Here’s what qualifies for tax exemption:

• Gifts received from relatives
• Gifts up to ₹50,000 from non-relatives
• Gifts received through inheritance or a will
• All gifts received on the occasion of marriage
• For example, receiving ₹10 lakh from your father as a wedding gift is entirely tax-free when filing ITR for AY2024-25.

How to file ITR for wedding gifts

Even though these gifts are exempt, they must be disclosed under 'Income from Other Sources' in ITR-2 or ITR-3, depending on your filing status.

Couples are advised to deposit wedding cash near the wedding date and maintain records of each gift received. This not only ensures compliance but also makes tax filing more seamless.