Gifts what is exempt, what is taxable, who pays.
Complete gift advisory — Section 56(2)(x) implications, list of exempt relatives, gifts to and from NRIs, FEMA rules on cross-border gifts, and proper gift deed drafting to keep gifts out of dispute.
Gifts in India are governed by Section 56(2)(x) of the Income-tax Act. Gifts from specified relatives are fully exempt, gifts up to ₹50,000 in aggregate from non-relatives are exempt, and any amount beyond that becomes taxable in the hands of the recipient at slab rates.
Cross-border gifts add another layer. Resident Indians can gift up to USD 250,000 abroad under LRS each financial year; gifts received from non-relatives abroad are taxable; and gifts of immovable property to NRIs need stamp duty plus FEMA compliance. Many family transfers fail tax scrutiny because of weak documentation, not because of bad intent.
We help families plan and execute gifts cleanly — confirm exemption under the relative definition, draft proper gift deeds, evaluate FEMA rules, and document the gift in a way that holds up to assessment. For high-value gifts, we also flag stamp duty and clubbing implications upfront.
Our Gifts Services
Section 56(2)(x) Review
Review of each gift against the Section 56(2)(x) exemption framework.
Gift Deed Drafting
Drafting and registration of gift deeds for movable and immovable property.
Relative Test
Confirmation that the donor falls within the defined relative list for full exemption.
Cross-Border Gifts
FEMA and tax review of gifts from NRIs to residents and vice versa.
LRS Gift Remittance
Gift remittances abroad under the USD 250,000 LRS limit.
Gift to Minor / Spouse
Clubbing analysis on gifts to spouse, minor, or HUF.
Stamp Duty Planning
Stamp duty implications on gift of immovable property across states.
Disclosure in ITR
Disclosure of exempt and taxable gifts in the income tax return.
Our Approach
Gift Profile
Donor, recipient, asset type, and value mapped.
Exemption Check
Relative status and exemption thresholds verified.
FEMA Position
Cross-border component reviewed under FEMA and LRS.
Documentation
Gift deed, declarations, and KYC packs prepared.
Filing & Disclosure
ITR disclosure done and records retained for scrutiny.
Why It Matters
Frequently Asked Questions
No, gifts from specified relatives are fully exempt under Section 56(2)(x).
Spouse, siblings, parents, lineal ascendants and descendants, and certain in-laws.
Taxable only if received from a non-relative and not covered under any exception.
Yes, subject to FEMA rules and LRS limit of USD 250,000 per year.
Mandatory for immovable property; advisable for any sizeable gift for evidentiary purposes.
Planning a Family Gift?
Get tax-clean, FEMA-compliant gift execution — exemption check, deed drafting, and documentation that holds up in assessment.
Plan My Gift Transfer or call +91 9819 000 511