ITR filing 2026: There is major update for taxpayers. There is a so much rules tax related which should you know about it. The ITR filing season has started, and taxpayers have many questions on their minds. One major question is whether it’s necessary to show money received from parents, siblings, or a spouse in your income. Many people in the country are worried that hiding this might create trouble for them. The time and anxiety of ITR filing shouldn’t lead you to hide money (gifts or financial help) received from parents or relatives in your income tax Return (ITR); instead, showing it as exempt income (tax-free income) is safe to avoid any future notices.
Did you hide any money? If you have received any amount from your parents, siblings, or spouse, it is necessary to report it in your ITR. If you try to hide it, you could get a notice. Tax authorities say that these gifts or assistance can also be considered part of your income, and it’s important to report them correctly.
Information about Rules and Laws
It is relevant for everyone to know that, according to income tax laws, if you receive money from a relative, it is mandatory to report this amount. Whether it is a gift or financial help, it must be shown in the ITR. If it is not done, the tax department can take action.
Tax rules and how to show it in ITR
Money received from relatives is tax-free: Under Section 56(2)(x) of the Income Tax Act, any amount received from close relatives like parents, siblings, or spouse is completely tax-free.
Why it is necessary to show in ITR: If a large sum is deposited in your bank account, the Income Tax Department’s automated system can detect it. If you do not show it in the ITR, the department may consider it ‘undisclosed income’ and send a notice.
Where to show it: While filing the ITR, display this amount in the ‘Others’ column under ‘Schedule EI’ (Exempt Income).
Keep proper proof: To avoid any future inquiries, get a gift deed made with parents or keep a record of the bank transfer.
When will the notice come?
The tax department explains that if they notice any irregularity, they can send a notice to the concerned person. Such a notice is possible when there is excess fund activity or a suspicious transaction. For this purpose, it’s better to fill in your financial details correctly. One point to note about gift tax rules is that if the amount you receive from your parents or relatives exceeds a certain limit, you may have to pay tax on it.
Currently, gifts received from family up to Rs 50,000 are not taxed. But remember, once this limit is crossed, you need to inform the relevant department. Why is it important to provide correct information in the ITR? Providing correct information not only clarifies your financial position but also helps avoid any disputes or notices in the future. Sometimes even small facts can turn into big issues. Therefore, it is very important to report all the amounts you have received accurately in your ITR.
