Tax rules on gifts can apply to movable assets under Income-tax Act, 2025
In short
Some gifts can be taxed under the Income-tax Act, 2025. The tax depends on the kind of asset, its value and the relationship between the giver and the person receiving it.
Some exemptions can still apply.
What the reporting says
The Income-tax Act, 2025 can tax certain gifts depending on whether the asset is movable, its value and the relationship between the giver and recipient. The rules can affect some taxpayers while exemptions may still apply in specific cases. The guidance highlights that not every gift is tax-free and that tax liability can arise from transfers of movable property.
Why it matters
The tax treatment of gifts under the Income-tax Act, 2025 depends on whether the gift is movable property, its value and the relationship between the giver and receiver. The issue is relevant for taxpayers handling gifts and possible tax liability.