Neutral impactEconomy
Got Gift Worth Over Rs 50,000? This Rule Can Help You Pay Zero Tax — Section 87A Explained
NDTV Profit 1 hr ago·30 Jul 2026, 12:50 pm
The government has a specific rule, known as Section 87A, that can save you from paying income tax on gifts. This rule applies if your total taxable income is below a certain limit. If you fall into this category, the government will reduce your tax liability to zero, effectively waiving the tax on the gift amount. This provision is designed to provide tax relief to individuals with lower incomes, ensuring that they are not burdened by taxes on small gifts they may receive.
This rule matters to investors because it offers a straightforward way to avoid paying taxes on gifts, provided your overall income is within the specified limit. It is important to note that this rule applies only to gifts received from non-relatives. Gifts from relatives are generally not considered taxable income. Therefore, understanding this rule can help you plan your finances better and avoid unnecessary tax payments.
What to watch next: Keep track of the income tax slab rates and the threshold limit for Section 87A. These limits are subject to change based on government policies and budget announcements. Staying informed about these changes will help you understand how they might impact your tax liability on gifts. Always consult a tax professional for personalized advice regarding your specific financial situation.
Key takeaways
- Category: Economy.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
