Raksha Bandhan: Is gifting money to your sister taxable? Income tax guidelines right here

Raksha Bandhan 2023: Raksha Bandhan, the attractive pageant celebrates the bonding between the siblings. Rakhi stays incomplete with out items. However, the traits are altering with time. But one factor that has remained fixed is the money, the cash that brothers are inclined to present to their sisters. So, how a lot cash are you able to give your sister on Raksha Bandhan 2023? Is it taxable? What does the revenue tax rule say?

There is not any restrict on the quantity of present given to the kinfolk who’re ascended or descended, lineally. Since your sister shares the identical bloodline as yours. “Any present given to you to your sister is neither taxable in your hand nor in your sister’s hand,” mentioned Archit Gupta, Founder and CEO, Clear.

There is not any restrict as much as which an individual may give a present to a different particular person both underneath the revenue tax legal guidelines or some other legislation. Likewise, there may be additionally no restrict to which an individual may give a present in money. “However, there’s a restrict of ₹2 lakh past which one can not settle for money from any particular person for any transaction together with present on one event,” said tax and investment expert Balwant Jain

In case the amount is more than ₹2 lakh, Jain suggested carrying out the transaction through banking channels in order to comply with the law. 

“The gifts are taxable in the hands of the recipient under Section 56(2)(x) but gifts from certain specified relatives are outside the scope of this provision,” added Balwant Jain.

Can you switch your share/shares to your sister? What is the process? 

Yes, shares will be transferred to your sister with none repercussion of taxes, mentioned Archit Gupta.

Raksha Bandhan 2023: Date, time, muhurat

There is loads of confusion about essentially the most auspicious time to tie Rakhi this 12 months because the pageant is widely known on two days- August 30, and August 31

This 12 months Raksha Bandhan shall be celebrated on Wednesday, August 30.

Best time to tie Rakhi on August 30- After 9:01 pm

Best time to tie Rakhi on August 31- Before 7:05 am

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Updated: 30 Aug 2023, 02:35 PM IST