3 Replies to “What is the correct procedure to receive money as gift from a relative in Karnataka?”

  1. Income Tax is levied by the Central Government of India and it is not a state subject. The law is not different for any state be it Karnataka or any other state.

    Gift of any amount from a relative is tax exempt. However the term relative has a limited definition whereby only parents, grandparents, children, grandchildren, spouse, brother, sister, spouse of brother or sister, parents of spouse, brother or sister of spouse and few more are included. For complete definition refer Income Tax Act or search google for the same.

    Cousins, niece, nephew, etc are excluded from the definition of relative hence any gift from them are taxable. However, gifts received by way of will, inheritance and on the occasion of marriage are tax exempt whether received from anyone.

Leave a Reply

Your email address will not be published. Required fields are marked *