Gift Tax

Gift tax is a levy imposed by tax authorities on the transfer of assets — including money, property, securities, or other valuables — from one person to another without receiving equivalent compensation in return (i.e., as a gift). In India, gifts are taxed under Section 56(2) of the Income Tax Act, 1961 — amounts or assets received as gifts exceeding ₹50,000 in aggregate during a financial year are taxable in the hands of the recipient as 'Income from Other Sources,' unless the gift is received from specified relatives (such as spouse, parents, siblings, or lineal descendants), on the occasion of marriage, or under a will or inheritance. Gifts of immovable property and specified movable assets (shares, jewellery, etc.) are also covered. For investors on Ventura Securities managing wealth transfers — including gifting of shares, transferring securities to family members, or estate planning — understanding gift tax provisions and exemptions is critical to structuring tax-efficient wealth transfers and avoiding unexpected tax liabilities.