This festival season, if you receive an expensive gift from someone other than a close relative, you will need to declare it in the income tax
returns and pay tax
on it. There are ten different gift categories that need to be declared and paid tax
on when received from someone in a personal capacity. These include cash, bullion, jewellery, shares, financial securities, drawing, paintings, and immovable property. According to income-tax laws, any gift above Rs 50,000 received from a person other than a close relative (spouse, parents, sibling, grandparents, lineal ascendants or descendant of you or your spouse) is taxable. Gifts received in a professional capacity, from a client or a vendor, are taxable irrespective of the amount, as they are considered as professional receipts.