Gift Tax Calculator (India)

How to use this gift tax calculator

1. Add up money from non-relatives. Enter everything friends, colleagues and others who are not relatives gave you in money this tax year: cash, UPI, bank transfers and cheques together.
2. Add the tax-free gifts from relatives, on your wedding or by inheritance. They don't change the tax, but you see the full picture.
3. Enter your other taxable income after deductions and pick your tax regime. This decides the slab your gifts fall into.
4. Add any gifts of property under "More options": shares, jewellery, gold, art or crypto at market value, and land or a building at its stamp duty value, including anything you bought for less than it was worth.

When is a gift taxable in India?

A gift is taxable only when it comes from someone who is not a relative, it isn't covered by one of the exemptions below, and the gifts of that kind add up to more than ₹50,000 in a tax year. When that happens, the gift is added to your income as "income from other sources" and taxed at your normal slab rate, together with your salary and other income. The person who gives the gift pays nothing.

The ₹50,000 figure is a threshold, not an allowance. If friends give you ₹50,000 in a year, none of it is taxable. If they give you ₹50,001, all ₹50,001 is. That cliff is why this calculator shows how much room you have left under the limit.

Who counts as a relative

Gifts from these people are tax-free whatever the amount:

• your spouse
• your brother or sister, and your spouse's brother or sister
• a brother or sister of either of your parents
• your lineal ascendants and descendants, such as parents, grandparents, children and grandchildren, and those of your spouse
• the spouse of any of the people above

The list is closed. Friends and cousins are not relatives, and while a gift from your uncle or aunt is tax-free, the list does not reach their children. For a Hindu undivided family, any member counts as a relative.

Gifts that are always tax-free

• Gifts from relatives, as listed above.
• Gifts received on the occasion of your marriage, from anyone.
• Money or property received under a will, by inheritance, or in contemplation of the giver's death.
• Money or property from a local authority, or from a registered charitable trust or institution (with some exceptions).
• Property received from an individual by a trust created solely for the benefit of that individual's relatives.

Gifts of property and stamp duty value

The rule also covers property: shares and securities, jewellery, bullion, paintings, sculptures and other works of art, archaeological collections and virtual digital assets such as crypto, valued at their market value. If these come free from non-relatives and their total value is more than ₹50,000, the whole value is taxable. If a non-relative sells them to you for less than they are worth and the gap is more than ₹50,000, the gap is taxable.

For land or a building, the value that counts is the stamp duty value your state uses (the circle rate or ready reckoner value), not the price on paper. A gift worth more than ₹50,000 is taxable in full. When you buy for less than the stamp duty value, the gap is taxable only if it is more than the higher of ₹50,000 and 10% of the price you paid.

How the tax is worked out

Taxable gifts are added to your other income and taxed at your slab rate. The calculator works out your tax with and without the gifts, so the difference is exactly what the gifts cost you. Under the new regime for tax year 2026-27 the slabs are:

Residents with total income up to ₹12 lakh get a rebate of up to ₹60,000, so they pay no tax, with marginal relief just above that. Under the old regime the slabs are nil up to ₹2.5 lakh (₹3 lakh at 60–79, ₹5 lakh at 80 or older), 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above, with a rebate that makes income up to ₹5 lakh tax-free. Surcharge applies above ₹50 lakh, and a 4% health and education cess is added on top.

Tips before you give or receive

• Keep a record. A gift deed or a simple signed letter, with bank transfer details, shows that money was a gift and who it came from.
• Prefer bank transfers to cash. They leave a clear trail if the tax department ever asks about a large credit.
• Report taxable gifts in your return under income from other sources, even when the rebate means no tax is due.
• Watch the year's running total from non-relatives, especially around weddings in the family, birthdays and festivals.
• For large or unusual gifts, such as property from a non-relative or gifts to or from NRIs, check with a chartered accountant.

This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.