ITR Submitting 2025: Ought to You Declare Presents By Family members Whereas Submitting Your ITR? Are Presents Taxable? Professional Feedback And Your One-Cease Information | Private Finance Information

New Delhi: As tax filers are all geared to file the ITR for Monetary Yr 2024-25 (Evaluation Yr 2025-26), it’s essential to know whether or not items acquired throughout the yr ought to be declared within the Revenue Tax Return (ITR) or not. 

What is taken into account a Present? Are all items taxable? The way to report them appropriately? These are among the many most incessantly requested query by tax filers throughout ITR season.

CA Ruchika Bhagat, MD, Neeraj Bhagat & Co in an unique remark to Reema Sharma of Zee Information mentioned, “With the growing digitization of the Indian tax system and stricter scrutiny by the Revenue Tax Division, taxpayers should be extra cautious than ever in disclosing all sources of earnings – together with items. 

What Is Thought of a Present Beneath Revenue Tax Regulation?

Beneath the Revenue Tax Act, a present can embody:

· Money or cheque

· Immovable property (land/constructing)

· Movable property (jewelry, shares, work, and so forth.)

Ruchika Bhagat says, if the mixture worth of such items exceeds Rs 50,000 in a monetary yr, and they’re acquired with out consideration. In that case, they could turn out to be taxable beneath the top “Revenue from Different Sources” (Part 56(2)(x), until exempt.

Are All Presents Taxable?

Bhagat says not all items are taxable. The next items are exempt from tax:

1. Presents from Family members

Presents acquired from a “relative” are totally exempt, whatever the quantity. The time period “relative” contains:

· Partner

· Brother/sister of the person or partner

· Brother/sister of both father or mother

· Any lineal ascendant or descendant of the person or partner

· Partner of any of the above

2. Presents on the Event of Marriage

Presents acquired by a person on their marriage are totally exempt, even when the quantity exceeds Rs 50,000.

3. Presents Obtained Beneath a Will or Inheritance

Presents acquired by means of a will or inheritance are additionally not taxable.

4. Presents from Specified Entities

Presents acquired from sure establishments, native authorities, charitable trusts, or registered establishments are exempt.

Ought to Presents Be Declared in ITR Submitting in 2025?

Sure, taxable items should be declared in your ITR.

Bhagat explains, if the items are taxable beneath Part 56(2)(x), they need to be reported beneath the top “Revenue from Different Sources” within the ITR.

Even exempt items ought to be reported for transparency.

Although not obligatory, it’s advisable to reveal exempt items (like these from kinfolk, acquired at marriage, and so forth.) within the Schedule “Exempt Revenue” of your ITR. This helps keep away from future scrutiny or queries from the Revenue Tax Division.

The way to Report Presents in ITR for AY 2025-26?

1. Login to the earnings tax portal (https://eportal.incometax.gov.in).

2. Choose the suitable ITR kind (normally ITR-1 or ITR-2 relying in your earnings).

3. Go to the part “Revenue from Different Sources”:

o Report taxable items exceeding ₹50,000 from non-relatives.

4. Go to the “Exempt Revenue” schedule:

o Report items from kinfolk, items acquired at marriage, and so forth.

5. Preserve correct documentation equivalent to present deeds, marriage ceremony invites, financial institution statements, and so forth. to help your declare in case of evaluation.

Widespread Errors to Keep away from

· Not aggregating items from a number of non-relatives.

· Ignoring documentation for big items from kinfolk.

· Failing to report exempt items, which might set off IT notices later.

Ruchika Bhagat cautions, “Because the tax division strengthens its knowledge analytics and surveillance, full and sincere disclosure has turn out to be important. Whereas not all items are taxable, correct declaration – whether or not taxable or exempt – ensures transparency, avoids litigation, and upholds your credibility as a accountable taxpayer.”

Should you acquired any important items throughout FY 2024-25, ensure that to investigate their nature, supply, and worth, and report them appropriately whereas submitting your ITR in 2025, she provides.