Are gifts received in a wedding liable for gift tax?
Gifts received as part of inheritance or wedding are kept outside the ambit of gift tax. Also if you receive gift from a close relative gift tax would not be applicable. The IT department may seek details of the gifts received in the weddings and the liability to prove the gifts emerging out of a wedding lie with you as a tax payer.
Understand that any sum of money in the form of cash or a cheque received as a gift on the occasion of marriage is fully exempt from tax in your hands.
Now, what does ‘occasion of marriage’ mean? This means either the day of the marriage itself or a day or two before or after. However, this tax exemption is applicable only for gifts from relatives. Relatives will include your spouse, your brother/sister or that of your spouse, the brother/sister of either of your parents or any of your lineal ascendants or descendants.
What happens when you receive gifts from a non-relative? Such gifts exceeding Rs. 50,000 in a year will be taxable if received after marriage.
So, it would be best if you receive all your (cash) gifts on the day of your marriage or a day or two before or after your marriage.
Gifts received by bride or groom on wedding are free from obligations or liabilities. Gifts with high worth including car, house, property or more should be given by gift deed.