Brother's Bhai Dooj Gift Is Tax-Free. Cousin's Is Taxable.
The Take
The Income Tax Act lists specified relatives whose gifts escape tax. Siblings make the list. Cousin brothers do not. The tax department treats a cousin's ₹5 lakh Bhai Dooj transfer as income. The festival celebrates sibling bonds. The taxman celebrates fine print. A cousin brother remains family at the puja. He becomes a taxpayer at the assessment.
The Wire
Per Livemint, gifts received from siblings on Bhai Dooj are exempt from income tax under the category of specified relatives. However, gifts from cousin brothers do not qualify for this exemption. Any cash or gold received from a cousin exceeding ₹50,000 in a financial year becomes taxable income. The Income Tax Act defines specified relatives narrowly, and cousins fall outside that list.
The receipts
Source: Livemint