Is a gift from my parents taxable?

No. Parents are relatives, so there is no tax on the gift, whatever the amount. If you are an adult, the income you later earn from it is yours and is taxed in your hands.

Are wedding gifts taxable?

Gifts received by the bride or groom on the occasion of their marriage are tax-free from anyone. The exemption does not cover gifts to their parents, or gifts on birthdays and anniversaries.

Does the person giving the gift pay any tax?

No. Gift tax was abolished in 1998. The giver pays nothing, though income from a gift to a spouse, son's wife or minor child is clubbed with the giver's income.

Do I need to show tax-free gifts in my return?

Large exempt gifts can be shown as exempt income where the ITR form asks for it. Either way, keep proof such as a gift deed and bank records in case the tax department asks about the source of the money.

Are gifts taxable in India?

Updated 11 October 2026

India has no separate gift tax, but a gift can be taxed as the receiver's income. Gifts from relatives, gifts on your own marriage, and anything you inherit are fully tax-free. Gifts from anyone else are tax-free only if they add up to ₹50,000 or less in a year; cross that and the whole amount is taxed at your slab rate.

The rule

The rule was section 56(2)(x) of the 1961 Act. From tax year 2026-27 it is section 92(2)(m) of the Income-tax Act, 2025, with the exemptions in section 92(3); the substance has not changed. A taxable gift is shown as "income from other sources" in the receiver's return. The giver pays nothing.

Three things decide the tax: who gave it, what it is, and the total for the year.

Money (cash, cheque, bank transfer, UPI): taxable if the total from non-relatives in the year is more than ₹50,000.
Land or a building received free: taxable on its stamp duty value, if that is more than ₹50,000.
Land or a building bought cheaply: the gap between the stamp duty value and the price is taxable, if it is more than both ₹50,000 and 10% of the price.
Other listed property (shares and securities, jewellery, bullion, paintings and other art, and virtual digital assets such as crypto): taxable on market value, if the total is more than ₹50,000.

Things outside that list, such as a car or a phone, are not taxed under this rule.

Who counts as a relative

Gifts from these people are tax-free, whatever the amount:

your spouse;
your brothers and sisters, and your spouse's brothers and sisters;
the brothers and sisters of either of your parents (your uncles and aunts);
your parents, grandparents, children and grandchildren, and the same relations of your spouse;
the spouse of any of the people above, such as a sister-in-law or a son's wife.

These people are not relatives, so the ₹50,000 limit applies to them: friends, colleagues and neighbours; cousins; nephews and nieces; your spouse's uncles, aunts and cousins; employers and business contacts. For an HUF, "relative" means any member of the family (see HUF basics).

Gifts that are always tax-free

From a relative, of any amount.
On the occasion of your own marriage, from anyone. This covers the bride and groom only, not their parents, and not birthdays or anniversaries.
Under a will or by inheritance.
In contemplation of the giver's death.
From a local authority, or from a registered charitable trust or institution.

Worked example. In tax year 2026-27, Meera receives ₹2,00,000 from her father's brother, ₹30,000 from a friend on her birthday and ₹25,000 from a cousin.
Her uncle is a relative, so his ₹2,00,000 is tax-free.
Her friend and her cousin are not relatives: ₹30,000 + ₹25,000 = ₹55,000. That is more than ₹50,000, so the whole ₹55,000 is taxable, not just the ₹5,000 above the limit.
If her top slab is 20%, the tax is ₹11,000, plus 4% cess = ₹11,440.
Had her cousin given ₹20,000 instead, the total from non-relatives would be exactly ₹50,000 and nothing would be taxable. Gifts she received at her wedding the year before were tax-free, whatever the amount.

Clubbing: when the income goes back to the giver

A gift to your spouse, your son's wife or a minor child is tax-free for them, but the income it earns (interest, rent, dividends) is added to your income under the clubbing rules. If you gift your wife ₹10 lakh and she puts it in an FD, the interest is taxed in your hands. Gifts to adult children and to parents are not clubbed: the income is theirs. See tax on FD interest.

Gifts from your employer

Gifts and vouchers from an employer are part of your salary, not covered by the ₹50,000 rule. Under the Income-tax Rules, 2026, gifts, vouchers and tokens worth up to ₹15,000 in total in a tax year are tax-free; the limit was ₹5,000 before April 2026. Above that, they are taxed as a perquisite in your salary.

Cash and proof

Even a tax-free gift should not be taken in cash of ₹2 lakh or more from one person in a day or for one occasion: the law bars such cash receipts, with a penalty equal to the amount. Use a bank transfer or cheque, and for large gifts keep a simple gift deed or letter showing the giver, the relationship and the amount, in case the tax department asks where the money came from.