Diwali Cash Gifts: How Much Money Can You Receive Tax-Free From Family And Friends?
Diwali is a time for exchanging gifts, with cash being one of the most common ways to share festive cheer with family members, friends, colleagues and neighbours. However, while receiving money as a Diwali gift may be a long-standing tradition, such gifts can have income-tax implications depending on the amount received and the relationship between the giver and the recipient. Under the Income-tax Act, 2025, which corresponds to the earlier Income-tax Act, 1961, cash gifts received from specified relatives are generally exempt from tax, irrespective of the amount. However, gifts received from friends, colleagues, neighbours and other non-relatives may attract tax if their aggregate value exceeds Rs 50,000 during a tax year. CA Suresh Surana explained that the tax treatment of gifts depends on both the value of the gifts and the relationship between the donor and the recipient. How Much…
