Do I have to pay tax on the said amount received. Answer: The recipient of gifts is required to pay tax under the tax laws and there is no tax liability for the donor in respect of the gifts made by him irrespective of the amount of gifts made by him. Gifts received are fully tax free as long as the aggregate value of the gifts received by a recipient from all the sources during the year does not exceed Rs. However, gifts received from certain specified relatives are tax free without any upper limit. 50,000/- the full amount of gifts received by you during a year from your nephew will be taxable in your hand.

Source: Mint June 06, 2021 04:52 UTC