Diwali 2025: How much gold can you receive as a Diwali gift without any income tax implications?

Beyond the celebration of joy and prosperity, Diwali is also a time for thoughtful gifting. Among the many gifts exchanged during Diwali, gold holds a special place as a symbol of wealth, blessings, and good fortune.

Whether in the form of coins, jewellery, or small bars, gifting gold to close friends and relatives is very common in the Diwali season.

According to CA Dr Suresh Surana, there is no specific limit prescribed under the Income Tax Act, 1961 for receiving gold coins or jewellery as a gift.

However, there could be a tax implication depending on the following factors:

• Who the gift is received from

• Aggregate fair market value of the gold received as a gift

"In accordance with the Income-tax Act, 1961, there is no specific limit prescribed for receiving gold, i.e. whether in the form of jewellery or coins as a gift. However, the tax implications depend on who the gift is received from and its aggregate fair market value," said Dr Surana.

Gifts are governed by Section 56(2)(x) of the Income Tax Act, which provides that any sum of money or property (including gold, jewellery, shares, or immovable property) received without consideration is taxable under the head “Income from Other Sources”, unless it falls under certain specified exemptions.

"As such, gold received as a Diwali gift from specified relatives is not taxable, while gold received from non-relatives or friends is taxable only if the total value of all such gifts exceeds ₹50,000 in a financial year," said Dr Surana.

No tax on gifts from relatives

"Gold (jewellery or coins) received from a 'relative' as defined under the IT Act such as parents, siblings, spouse, lineal ascendants or descendants, and in-laws is fully exempt from tax, irrespective of the quantity or value. Thus, gold received from family members on occasions such as Diwali carries no tax liability," said Dr Surana.

Gifts from non-relatives/friends:

Gold received from friends or other non-relatives is taxable if the aggregate fair market value of all gifts (money or property) received from non-relatives during a financial year exceeds ₹50,000. If the total value remains up to ₹50,000, no tax is attracted.

Gift received during marriage

Tax exemption applies to gifts received on the occasion of an individual’s marriage. All gifts (including gold) received during marriage are fully exempt, regardless of their value or source. This exemption, however, does not extend to other festivals such as Diwali or birthdays.