-
May 27, 2025
-
Parents, beware: Gifts you get at your child's wedding can be taxed
Let’s talk about something most Indian families experience: gifts during weddings. You’ve probably attended a wedding where the parents of the bride or groom receive ‘shagun’ or money from friends and relatives. Sometimes it’s a token, other times, it’s quite a lot.
Now here’s the big question: Is that money tax-free?
Well, according to a ruling by the Punjab & Haryana High Court in 2013, not always. In fact, if you’re the parent and the money was given to you during your child’s marriage, you could end up paying income tax on it.
Meet Rajinder Mohan Lal, a Chandigarh resident who received over Rs 21 lakh as gifts from friends and family during his daughter’s wedding.
Sounds normal, right? He even provided proof that this was just shagun from well-wishers.
But when he filed his income tax return in 2007-08, he didn’t include that Rs 21 lakh. The Income Tax Department wasn’t happy — and added the amount to his taxable income.
|