SHORT ANSWER:
Cash gifts above the limit are subject to tax under the Income Tax Act.
DETAILS:
- The limit for cash gifts is ₹50,000 in a financial year.
- Any amount exceeding this limit is taxable as income in the hands of the recipient.
PUNISHMENT / IMPLICATIONS (if applicable):
- The recipient may have to pay income tax on the excess amount.
- Failure to report may lead to penalties under the Income Tax Act.
SOURCE:
- Income Tax Act, 1961
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