Archive · 19 Sep 2025
Tax Implications Explained: Gifts, Property Sales, and Capital Gains
If you give money to your spouse, the income it earns is still taxed as yours.
When selling property, the buyer deducts 1% tax if the price is over ₹50 lakh, but not on the GST.
If you sell jewelry given as a gift, you might owe capital gains tax, especially if you held it for over two years.
However, you might avoid this tax by using the money to buy or build a house.
Gifts from spouses are not taxed, but income generated from them is taxed as the giver's.
TDS of 1% is deducted on property sales over ₹50 lakh, excluding GST.
Selling jewelry given as a gift incurs capital gains tax.
Capital gains are considered long-term if the jewelry was held for more than two years.
Section 54F provides exemptions if proceeds are used to construct or purchase a house.
- Who
- Taxpayers with questions about gifts, property, and capital gains
- What
- Clarification of tax rules regarding gifts, property sales, and capital gains.
- When
- Information relevant to current tax regulations.
- Where
- Information applicable to Indian income tax laws.
- Why
- To provide clarity on complex tax implications for common financial transactions.
- Gift Tax (Spouse)
- Income from gifts to a spouse is taxable under "Income from Other Sources".
- TDS on Property
- TDS of 1% is deducted when property cost exceeds ₹50 lakh (excluding GST).
- Capital Gains Tax (Jewellery)
- Sale of gifted jewelry attracts capital gains tax. LTCG if held over two years.
- Section 54F Exemption
- Exemption available if sale proceeds are used to buy/construct a house.
- Capital Gains Tax
- Gains from selling capital assets like jewelry is taxed.