LatestIncome Tax 6 November 2026
Diwali Gift Tax Rules 2026: Income Tax, TDS & GST Explained
The 2026 tax updates clarify how Diwali gifts are treated under Indian law, detailing income tax thresholds, TDS obligations and GST rates. Recent changes include the removal of a special tax benefit for banks importing gold and a Rs 1.07 lakh penalty notice issued to Bharti Airtel by the Department of Telecommunications in Maharashtra, highlighting stricter enforcement on related transactions.
Key Points on Diwali Gift Taxation (2026)
- Income Tax: Gifts above Rs 50,000 in a financial year are taxable as income for the recipient.
- TDS: No TDS is deducted on gift transactions, but parties must retain records for audit purposes.
- GST: Gifts classified as goods attract the standard 18% GST unless exempted under specific categories.
- Policy Shift: The government has withdrawn the special tax benefit previously granted to banks for gold imports, affecting the cost structure of gold‑based gifts.
- Enforcement: Bharti Airtel received a Rs 1.07 lakh penalty from the Department of Telecommunications, Maharashtra, for non‑compliance related to telecom services tied to gift promotions.
For the full guide, visit the original article here.
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