The city of dreams, Mumbai, today (July 12) buzzes with excitement, as the high profile event, the wedding of Anant Ambani and Radhika Merchant, is finally to take place after months of pre-wedding festivities in Jamnagar, Gujarat, to a glamorous party in Portofino, Italy one after the another. Moreover, the duo has been a major social media sensation for a couple of months due to their upcoming wedding. As India is well known for its weddings, which are often grand and lavish, it is expected that with high-profile nuptials like Anant Ambani-Radhika Merchant wedding, the gifts exchanged will be as extravagant as the celebration itself.
But amidst the glitters and glamour that is going on, one intriguing question that stands out is , “Do the luxurious wedding gifts exchanged at such grand occasions come with a hidden tax burden?” The Luxurious Gift Exchange Indian weddings, especially high profile nuptials, involving families like Ambanis, often feature the exchange of luxurious gifts given to the couple, which can be ranged from Jewellery and real estate to high end cars and other lavish items. But with these gifts, which is also seen as as symbol of love and goodwill in Indian weddings, they also attract the attention of tax authorities. A post shared by Ambani Updates (@ambani__updates) Understanding the tax gifts In India, the Income Tax Act of 1961 governs the taxation of gifts.
According to this act, in India, any gift received by an individual exceeding Rs 50,000 in.