Sometime there is a confusion about taxability of gifts on the occasion of marriage as in India there is always a culture of giving gifts on marriage. But what income tax law says is also an important issue. So these are the points which should remember before receiving gifts on marriage.
1. Gifts with a monetary value of over Rs 50,000, received from anyone other than a defined relative , is subject to tax in the hands of the recipient.
2. However, gifts received by the bride and the groom, on the occasion of their wedding, are exempt from tax.
3. Deposit cash received as gifts into the bank account as close to the wedding date as possible.
4. High value gifts especially a car or a house, should be supported by a gift deed, dated close to the date of the wedding.
5. Maintain a record of gifts received at the wedding as part of the normal documentation of assets you hold, especially precious jewellery .