Gift tax is a tax on the exchange of gifts that has a higher value. Gifts can be given in the form of cash, immovable property (land/building) and movable property (such as securities, jewellery, painting, sculpture, work of art). As per the current gift tax provisions, gifts received in cash, which exceed Rs 50,000, are taxable. Similarly, in the case of other gifts also, taxes are to be paid if the gift value/stamp duty value crosses Rs 50000. If the value exceeds Rs 50,000, the whole amount is taxable. The amount is added to ‘income from other sources’ and, thus, is taxed according to the person’s tax slab.
