Case breakdown: Movie Tohfa
When Jitendera gifted a saree to Jaya Parda in the movie Tohfa, Jaya Parda’s happiness had no bounds, together they started singing “Tohfa Tohfa Laya Laya” (Gift gift got got). Jitendera’s character was so proud of the saree he had brought, that every frame of the song had sarees in the background. Let me reiterate Jitendera only brought 1 saree, but let’s show 100 sarees in the background.
In this blog, Learning Perspectives will explore how does Indian income tax department look at gifting high value tohfas (gifts)?
What is Gift Tax?
If the value of the tohfa (gift) exceeds Rs. 50,000 a year; then the amount is taxed in the hands of the receiver, but wait; if this gift is given by your relative then you can breathe a sigh of relief as it won’t be taxable. You might think even your bua’s dadi’s son’s daughter is your relative. Don’t sweat it.
Income tax department clearly defines who your relatives are. A relative according to Income tax department are:
- a) Spouse of the individual
- b) Brother or sister of the individual
- c) Brother or sister of spouse of the individual
- d) Brother or sister of either of parents of the individual
- e) Any lineal ascendant or descendant of the individual
- f) Any lineal ascendant or descendant of spouse of the individual
Any sum of money or property received is not taxable on the occasion of marriage of an individual (I wonder what it promotes). Also any sum of money or property that is received under a will or by way of inheritance is also exempt from tax. Amount received from a local authority, fund, foundation, educational institution too shall not be taxable.
PS: Clearly there is no tax on “pyaar ka Tohfa” in this case- Saree and that’s why joy of Jeetu and Jaya Parda has no bounds.