Income Tax Filing: Don't Forget This Item

Most of us would been done filing our income tax returns for 2013-14, with just days left to the due date of July 31. After tax filing was made easy, thanks to the convenience of e-filing, more and more people are taking to filing their returns themselves. However, it's crucial that we don't leave out any elements while filing our income tax returns.

Did you know that gifts received are also taxable and you are liable to declare it while filing your returns? Or even if you won a lottery; won prize money from a contest, it has to reflect in your returns, under the income tax rules.

Any gift that is valued in excess of Rs 50,000 received from persons other than relatives is treated as income and falls under the category of 'Income from other sources'. The entire amount that the gift is worth is added to your gross total income on which income tax is calculated.

However gifts received when you get married, or those which you get as inheritance are not taxable. And it's not just your blood relatives; gifts received from your spouse's relatives are also exempt from income tax.

But, suppose if your boyfriend has gifted you jewellery which costs more than Rs 50,000, you will have to pay tax on it. Same goes, if your girlfriend gifts you some sculpture or painting upwards of Rs 50,000.