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News India Live, Digital Desk: Gift Tax in India: On Teej-festivals or special occasions we often give money or precious things to show love to our children and family. But do you know that your loving gift can come in the eyes of the Income Tax Department? Income tax rules are so entangled about giving and taking gifts that even a small mistake can send you a tax notice. Let us understand this whole puzzle in easy language today. What does the rules of income tax say? First of all it is important to know that every gift is not taxed. There is a simple rule of income tax: Laxman Rekha of Rs 50,000: If you get a total gifts of more than Rs 50,000 from such people in one financial year (1 April to 31 March), which is not close to you, then the entire amount will be counted and tax will be taxed. For example, if a friend gave you Rs 30,000 and the other Rs 25,000, the total amount was Rs 55,000. Now you will have to pay tax according to your tax slab at these entire 55,000 rupees. Who are relatives who do not get tax on the gift? Now the most important questions come. The Income Tax Act has made a list of certain relatives. If you get any gift from these relatives, no matter how big it is of money (even though 50 lakh or 1 crore), there is no tax. This list includes: spouse or wife or sister your parents and your spouse’s parents (mother-in-law) your straight descendants and ancestor (Lineal Ascendants) and Lineal Ascendants, then what is the rule in the case of daughter and granddaughter? Most people are confused here. According to the Income Tax rules, all your children (son/daughter), grandson and grandson in the category of “straight descendants” come. It simply means whether you give gifts to your daughter or your granddaughter/granddaughter, it is completely tax-free. The one who gets a gift will not have to pay any tax on this amount, no matter how big it is. In the eyes of the law, both daughter and granddaughter/granddaughter have been placed in the same category. The gift of marriage is always to tax-free and interesting rules. Any gift that a person receives on the occasion of his marriage, whether he meets a friend, meets a relative or someone else, is completely tax-free. There is no limit of Rs 50,000 on this. So next time you give someone a gift with love, then keep these rules in mind so that your love does not become a tax burden on anyone.