ITR Filing 2025: Should You Declare Gifts By Relatives While Filing Your ITR? Are Gifts Taxable? Expert Comments And Your One-Stop Guide

New Delhi: As tax filers are all geared to document the ITR for Financial Year 2024-25 (Assessment Year 2025-26), it’s necessary to grasp whether or not presents won all over the 12 months must be declared within the Income Tax Return (ITR) or no longer. 

What is thought of as a Gift? Are all presents taxable? How to file them as it should be? These are a few of the maximum often requested query by way of tax filers all over ITR season.

CA Ruchika Bhagat, MD, Neeraj Bhagat & Co in an unique remark to Reema Sharma of Zee News stated, “With the expanding digitization of the Indian tax device and stricter scrutiny by way of the Income Tax Department, taxpayers should be extra cautious than ever in disclosing all resources of source of revenue – together with presents. 

What Is Considered a Gift Under Income Tax Law?

Under the Income Tax Act, a present can come with:

· Cash or cheque

· Immovable assets (land/construction)

· Movable assets (jewelry, stocks, art work, and so forth.)

Ruchika Bhagat says, if the mixture price of such presents exceeds Rs 50,000 in a monetary 12 months, and they’re won with out attention. In that case, they are going to turn into taxable below the top “Income from Other Sources” (Section 56(2)(x), until exempt.

Are All Gifts Taxable?

Bhagat says no longer all presents are taxable. The following presents are exempt from tax:

1. Gifts from Relatives

Gifts won from a “relative” are absolutely exempt, without reference to the quantity. The time period “relative” contains:

· Spouse

· Brother/sister of the person or partner

· Brother/sister of both mother or father

· Any lineal ascendant or descendant of the person or partner

· Spouse of any of the above

2. Gifts at the Occasion of Marriage

Gifts won by way of a person on their marriage are absolutely exempt, even though the quantity exceeds Rs 50,000.

3. Gifts Received Under a Will or Inheritance

Gifts won thru a will or inheritance also are no longer taxable.

4. Gifts from Specified Entities

Gifts won from sure establishments, native government, charitable trusts, or registered establishments are exempt.

Should Gifts Be Declared in ITR Filing in 2025?

Yes, taxable presents should be declared for your ITR.

Bhagat explains, if the presents are taxable below Section 56(2)(x), they must be reported below the top “Income from Other Sources” within the ITR.

Even exempt presents must be reported for transparency.

Though no longer necessary, you’ll want to expose exempt presents (like the ones from family members, won at marriage, and so forth.) within the Schedule “Exempt Income” of your ITR. This is helping steer clear of long term scrutiny or queries from the Income Tax Department.

How to Report Gifts in ITR for AY 2025-26?

1. Login to the source of revenue tax portal (https://eportal.incometax.gov.in).

2. Select the best ITR shape (normally ITR-1 or ITR-2 relying to your source of revenue).

3. Go to the phase “Income from Other Sources”:

o Report taxable presents exceeding ₹50,000 from non-relatives.

4. Go to the “Exempt Income” agenda:

o Report presents from family members, presents won at marriage, and so forth.

5. Maintain right kind documentation akin to present deeds, wedding ceremony invites, financial institution statements, and so forth. to enhance your declare in case of overview.

Common Mistakes to Avoid

· Not aggregating presents from a couple of non-relatives.

· Ignoring documentation for massive presents from family members.

· Failing to file exempt presents, which is able to cause IT notices later.

Ruchika Bhagat cautions, “As the tax department strengthens its data analytics and surveillance, full and honest disclosure has become essential. While not all gifts are taxable, proper declaration – whether taxable or exempt – ensures transparency, avoids litigation, and upholds your credibility as a responsible taxpayer.”

If you won any vital presents all over FY 2024-25, you should definitely analyze their nature, supply, and worth, and file them as it should be whilst submitting your ITR in 2025, she provides.