Transparency in Reporting Gifts Can Help Taxpayers Avoid Future Tax Scrutiny, Says Vipin Upadhyay

As taxpayers prepare to file their Income Tax Returns (ITR) for Assessment Year 2026–27, Vipin Upadhyay has advised taxpayers to adopt a disclosure-oriented approach when reporting gifts received from relatives and friends, even where such gifts may be exempt from tax.

Speaking to moneycontrol.com in an article titled “ITR 2026: Why you should disclose gifts received from relatives and friends in your Income Tax Return,” Vipin emphasized that transparency in tax reporting is essential for ensuring consistency between a taxpayer’s return and their financial records.

According to Vipin, wherever the Income Tax Return contains a dedicated field for reporting information, taxpayers should consider making appropriate disclosures rather than relying solely on the tax-exempt nature of a transaction.

“High-value gifts, gifts received through banking channels, or those that significantly impact a taxpayer’s financial profile are better disclosed to maintain consistency between the return and financial records. Voluntary disclosure also helps explain the source of funds in cases involving major investments, property acquisitions, or sizeable bank credits. The guiding principle should be transparency rather than the assumption that tax exemption eliminates the need for reporting,” he said.

Vipin noted that proactive disclosure can help taxpayers establish a clear financial trail and reduce the likelihood of queries during assessments or scrutiny proceedings. As tax authorities increasingly rely on data analytics and information matching, maintaining consistency across income tax returns, banking records and financial transactions has become increasingly important.

Read the full article here: https://www.moneycontrol.com/news/business/personal-finance/itr-2026-why-you-should-disclose-gifts-received-from-relatives-and-friends-in-your-income-tax-return-13981905.html 

Last Updated on 27 July, 2026