Income Tax Rule: Know how much money will be received in your wedding
Income Tax rule: The Wedding season already starts in India. In this environment, all are excited, but they are ignoring one thing. That will be costly for you. At a wedding, how much money will you receive as a gift? If you don’t know about this rule, you will face a tax penalty. So that you should know the Income Tax Act, how much cash or gift is received at a wedding.
According to the Income Tax Act, in a wedding, every gift, cash, or land is non-taxable. Wedding gifts are not under the category of income. So, there are some limits on gifts and cash.
If you exceed this limit, you will be fined heavily. The penalty will be equal to the amount of cash you have taken by violating the rules. For example, if someone gives you ₹3 lakh in cash, you will be penalized for ₹3 lakh only. This penalty is imposed under Section 269ST. Therefore, caution is essential when accepting cash at a wedding.
If someone wants to gift you an amount exceeding ₹2 lakh, do not accept it in cash. You can accept the amount via check, RTGS, NEFT, IMPS, or any online transfer. This way, you will receive a large sum of money and avoid the penalty.
