Is receiving gold as a gift taxable?

Taxation on the gifting of gold is similar to taxation on other forms of gifting. If you receive gold as a gift (in the form of jewelry, coins, ETF, etc.) greater than the value of INR 50,000, you are required to pay taxes under IFOS (income from other sources) at slab rates as per section 56(2) of the Income Tax Act. While all gifts up to Rs 50,000 are completely tax-free.

Also, if you sell gold that you have received as a gift or inheritance, then that needs to be reported as income under capital gains at special rates. And taxes on the capital gain would be determined from the period of holding of an asset by the previous owner.

However, there are a few exceptions to it,

1. Gifts from relatives

If you’re receiving gold as a gift from your relatives then it is not taxable irrespective of any occasion.

Relatives per the Income Tax Act are,

• Your spouse
• Your parents, grandparents, son, daughter, and grandson.
• Brother and sister (including their respective spouses) of you and your spouse
• Brother and sister (including their respective spouses) of your father and mother
  (Friends do not fall under the category of relatives.)

2. Wedding Gifts

Gold or anything gifted on the occasion of your wedding is absolutely tax-free, be it from friends, relatives, or family. However, you are required to disclose the details of jewelry if your annual total income exceeds the prescribed limit.

3. Gifts Inherited

Transfer of ownership of assets like property, money, gold, or other assets, from one generation to the next, as a legacy of one’s family is passed down to future generations. Gifts received as inheritance are not subject to taxation.

4. Gold received in Contemplation of Death

Gold received in contemplation of death can include situations such as a will, an inheritance, a life insurance payout, or a charity donation. This is exempted from taxes, as it is considered to be a gift.