New Delhi, May 15 -- Gifts received in the form of money, property, or assets are treated as income under the Income Tax Act. If the value of such gifts exceeds the prescribed threshold, they will be taxed under the head "income from other sources" in the hand of the recipient. The tax treatment depends on the value of the gift, the relationship between the donor and recipient, and the nature of the transaction.

Under existing income tax rules, gifts with a total value of up to Rs.50,000 in a financial year are entirely exempt from tax, even if you received them from your friends. Meanwhile, certain exemptions are available for gifts received from specified relatives or during occasions such as marriage, where no taxes apply even if the ...