India, Feb. 14 -- Gifting a house to your wife on Valentine's Day may be a romantic gesture, but it also calls for careful tax and legal planning. Surprising her with the keys to a dream home sounds heartwarming, yet transferring immovable property in India carries important tax, legal, and regulatory implications.

Under Section 56(2)(x) of the Income Tax Act, gifts from spouses are fully exempt from tax for the recipient, regardless of value, even if the house is worth Rs.1 crore or more.

"A wife is treated as a relative under the Income Tax Act, so when a husband gifts a property to his wife without any consideration, it is completely tax-free, both in the donor's and the recipient's hands," says Vivek Jalan, Partner at Tax Connect Ad...