23-February-2026
Taxation
 
Cash gifts from family, relatives not exempt from income tax if you fail to explain these details, says ITAT
23-Feb-2026

Cash gifts from relatives are generally tax-free under the Income Tax Act. But a recent case discussed by tax advisory platform TaxBuddy in a social media thread shows how exemption can fail without proper documentation. In this matter, Rs 10.43 lakh received as cash gifts on a marriage anniversary was ultimately taxed after the taxpayer failed to provide basic details of the donors. According to the thread shared by TaxBuddy, the taxpayer had celebrated his 10th marriage anniversary and received multiple cash gifts from family members and relatives. Individual amounts ranged from Rs 2,100 to Rs 11,000, and the total cash deposited in his bank account came to Rs 10,43,998.

News Source:- https://www.financialexpress.com/money/cash-gifts-from-family-relatives-not-exempt-from-income-tax-if-you-fail-to-explain-these-details-says-itat-4150996/?ref=personalfinance_hp