You may have
to pay tax on Diwali gifts!

Everyone enjoys receiving gifts on Diwali, but you might have to pay Income Tax on certain Diwali gifts.
What does the law say about Income Tax on Diwali?

Income-Tax Act, 1961, says Diwali gifts priced above
Rs 50,000 from non-exempted friend will be taxed 

Income Tax on such gifts are
in addition to Diwali bonus, which are taxed under the head salaries 

Diwali gifts from employer 

Gifts received from office above Rs 5,000 including bonuses 

Types of gifts that are taxed 

Diwali gifts from friends 

Gifts of cash above Rs 50,000 are taxable. This takes in account all the gifts received in a year including on your birthday 

Types of gifts that are taxed 

Gifts received from employer 

Any amount of money received 

Specified movable property

Specified movable property received at a price lower than fair market value 

Types of gifts that are taxed 

Parents’ siblings
Lineal ascendant/descendant

Diwali gifts received from
following relatives -

Types of gifts that
are not taxed 


Types of gifts that
are not taxed 

Non-Fungible Tokens (NFT)
or Virtual Digital Assets (VDA)
worth above Rs 50,000

Tax on Crypto Diwali gifts 

So be aware about
the tax component

when you receive
gifts this Diwali 

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