What's the tax-free limit for giving gifts to parents or children?
Gifts given to family, like children, parents, spouse, and siblings, are fully exempt from income tax, regardless of the amount, as Income Tax Act specifically exempts gifts from 'relatives', Moneycontrol reported. Rule changes when giving gifts to someone outside this category. If value of gifts to 'non-relatives' exceeds ₹50,000 in financial year, the entire amount becomes taxable for recipient.