New Delhi, April 22 -- There are multiple occasions where you may give or receive financial gifts to family, and India's Income-Tax laws have provisions that allow such transactions between family members to be exempted from taxes. However, in order to avoid misuse of "gifts" for tax evasion, the laws also prescribe declaration of such transfers and gifts in your income tax returns (ITR) while filing your taxes.

In India, you are allowed to transfer assets (gold, property), cash, mutual fund units, and equity shares to family as gift, which is considered to be tax-free subject to certain terms. Here, to qualify for exemption, the recipient must be family.

Further, for gifts or transfers to third party recipients, all transfers over Rs.5...