Wife Gifts Rs 5 Lakh Necklace on Karwa Chauth; Husband Pays Tax

News18 Hindi · india

During the festive season, a common question arises about the tax implications of expensive gifts given between spouses. According to Section 56(2)(x) of the Income Tax Act, gifts received from close relatives are exempt from income tax. Therefore, if a husband gifts his wife a necklace worth Rs 5 lakh for Karwa Chauth, the wife will not have to pay any tax on it. However, the husband may have to pay taxes like GST and making charges on the purchase of the gift.