Do You Need to Pay Tax on Diwali Gifts? Know the Rules
Diwali, the festival of lights, is a time of joy, celebration, and exchange of gifts. Whether it’s cash, jewelry, or other valuable items, giving and receiving gifts is an integral part of Indian culture, especially during Diwali. However, from a taxation perspective, many individuals remain uncertain about the tax implications associated with gifts. Do gifts received during Diwali attract taxes, and if so, what are the applicable rules?