Gift Tax Calculator
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Runs entirely in your browser — your numbers never leave this page.
How it works
India does not tax the giver — it taxes the receiver. Any gift above ₹50,000 a year from a non-relative is fully taxable as "income from other sources" at your slab. Below ₹50,000, it is ignored entirely.
Two big exemptions: gifts from relatives (a defined list — parents, siblings, in-laws, lineal descendants/ascendants) are exempt without limit, and gifts on marriage are exempt regardless of who gives or how much. Wedding gifts are the single biggest legitimate use of this rule.
Property and shares follow the same ₹50,000 threshold on stamp-duty/market value. And watch clubbing: gift money to a spouse that earns interest — the interest is taxed in your hands, not theirs.
Frequently asked questions
Who counts as a relative for gift tax?
Spouse, siblings, spouse's siblings, parents' siblings, lineal ascendants and descendants (parents, grandparents, children, grandchildren) and their spouses. Cousins, uncles' wives' siblings and friends do NOT count.
Are wedding gifts taxable?
No — gifts received on the occasion of marriage are fully exempt, no matter the amount or the giver. Keep wedding cards/invites as proof for large gifts.
What about gifts by will or inheritance?
Fully exempt — inheritance is not income. This includes property received under a will, no matter the value.
I received ₹40,000 from a friend. Taxable?
No — aggregate non-relative gifts up to ₹50,000 per year are exempt. Cross ₹50,000 and the ENTIRE amount becomes taxable, not just the excess.
Is that right — the whole amount?
Yes. At ₹50,001 from a non-relative, the full ₹50,001 is taxable. The threshold is a cliff, not a deduction.
How is gifted property valued?
At stamp-duty value on the transfer date. If you buy property below stamp-duty value, the shortfall above ₹50,000 is taxable as a gift.
What about gifts to my spouse?
Exempt at receipt — but income the gift generates (interest, rent) is clubbed and taxed in YOUR hands under Section 64. The classic trap.
Are gifts from employer taxable?
Gifts from an employer above ₹5,000/year are taxable as perquisites (salary). Below ₹5,000 is exempt. Different section, different threshold — do not mix them up.
Do I report exempt gifts in ITR?
Yes — disclose under "exempt income" (Schedule EI). Exempt does not mean invisible; disclosure avoids scrutiny notices.
What about foreign gifts / NRI relatives?
Same rules apply based on the relationship, not residency. A gift from an NRI sibling is exempt as a relative's gift; from an NRI friend above ₹50,000, taxable.