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.

Since gifts from specified relatives are exempt under income tax law, the taxpayer claimed the amount was not taxable and described them as customary gifts received during a social function.