Diwali Gifting | Know The Tax Rules

Published On: November 06, 2023 - As the festivities and Diwali celebrations are nearing, relatives and friends tend to exchange gifts and sweets. But, did you ever wonder if gifts received during the festive season are exempted from income tax? According to experts, Diwali gifts received from relatives are fully exempt under the Income Tax Act. However, any gifts received exceeding Rs 50,000 received from a person other than the relative shall be taxable under the head 'Income from other sources.'