Wedding Gifts & Taxation: Aditya Bhattachrya Highlights Key Compliance Requirements

In a recent Business Standard article, Aditya Bhattachrya provided crucial insights into the tax treatment of wedding gifts in India.

He explained that while cash gifts above ₹2 lakh from one person can attract penalties under Section 269ST of the Income-tax Act, non-cash high-value gifts must also be documented properly. “Obtaining donor letters for significant non-cash gifts ensures transparency and safeguards the recipient from future tax scrutiny,” he noted.

Aditya further emphasized the importance of understanding Section 56(2)(x) of the Act, which uses the expression “on the occasion of the marriage”. He clarified that this specific exemption allows gifts received at the time of marriage to remain tax-free, distinguishing them from other occasions where gifts may attract tax implications.

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