Tax Implications of Gifts Received from Family Members in 2026 ITR Filings

Taxation of Gifts from Relatives: A Clarification for AY 2026-27

As taxpayers begin filing their income tax returns for the Assessment Year (AY) 2026-27, many are unsure whether gifts received from relatives need to be reported in their Income Tax Return (ITR) and, if so, under which section. The revised ITR forms have eliminated the clear category for reporting gifts received from relatives, fueling confusion among taxpayers.

Gifts from Relatives: Generally Not Taxable

A gift received from a relative is generally a capital receipt and is not taxable under the Income-tax Act, irrespective of the amount involved. This is in accordance with Section 56 of the Income-tax Act, which specifically excludes gifts received from specified relatives from taxation. Gifts received on the occasion of marriage are also exempt from tax. Furthermore, gifts from any person(s) are not taxable if their aggregate value does not exceed Rs 50,000 in a financial year.