Gift to married daughter tax-free, income from it taxed

Parents gifting money, property or jewellery to their married daughter is generally tax-free under the Income-tax Act, 2025. The usual Rs 50,000 threshold does not apply when the gift is from a specified relative such as parents.

But income generated from the gifted asset, interest on fixed deposits, rent from property, dividends from shares, or capital gains from sale of investments, is taxable in the daughter's hands. Nishant Shanker of Navraj Global Advisors said the spouse or minor child clubbing provisions do not apply here.

Parents and daughters should maintain proper documentation and consult a tax professional for compliance.