This is day 6 of our Money and Marriage series

Understanding gift tax:
– Under Section 56 of the Income Tax Act, 1961, gifts received by an individual during a financial year exceeding Rs. 50,000 is considered taxable as income from other sources.

Exempt gift category:
– Gifts received at your wedding are exempt from this tax. So enjoy your special day without worrying about the tax implications of these gifts.

Record keeping is essential:
– Even though wedding gifts are exempt, it's critical to keep track of all gifts, especially valuables like houses or cars.
– Keep this information as part of your regular documentation proving your assets.

Clubbing amenities to consider:
– Although wedding gifts are tax-free, you must be aware of clubbing provisions if gifts come from certain family members.
– For example, if a daughter-in-law receives a gift from her father-in-law or mother-in-law, the income from that gift must be added to the income of the father-in-law who made the gift. ‍‍

Why this is important:
– Keeping detailed records can help avoid future tax complications and ensure a smooth financial journey as a newlywed couple.

Pro tip:
– Always consult a tax professional or financial advisor for personalized advice and ensure you comply with all tax regulations.

Here's to love, laughter, and a financially savvy happily ever after!

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