KL Rahul-Athiya Shetty wedding: How much tax will the newly-married couple pay for expensive wedding gifts?

KL Rahul wedding, Gift Tax: Celebrity weddings always receive a fair bit of coverage, but cricketer KL Rahul and Bollywood actress Athiya Shetty's wedding last week created an immense buzz across the nation thanks to the grandeur on display and the lavish gifts that the newly-married couple reportedly received. Among other gifts, reports doing the rounds said that the couple received a premium BMW luxury car and a luxurious house in Mumbai.

According to reports, bride’s father actor Suniel Shetty gifted the couple a fancy apartment worth Rs 50 crores in Mumbai.

And the couple’s close friends also reportedly showered the duo with luxurious gift items. Among them being a BMW car worth Rs 2.17 crores approximately, rumoured to have been gifted by groom's teammate Virat Kohli, and a Kawasaki Ninja bike worth Rs 80 lakhs approximately, apparently gifted by former Indian cricket team captain, MS Dhoni.

Multiple reports also suggested that Bollywood actor Salman Khan gifted a top-of-the-line Audi car to the couple and veteran actor Jackie Shroff gifted them an expensive watch as a wedding present.

However, the bride's family has denied these reports.

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KL Rahul-Athiya Shetty wedding: Gift Tax

Whether the rumours are true, or not, is a different thing altogether, but looking at the whole list of exorbitant wedding gifts, one wonders how much tax will the couple have to pay on these lavish items received at their wedding.

As per Tax Expert Gauri Chadha, the answer is zero tax — they will not be liable to pay a single rupee for the gifts received.

As per gift tax rule, she says that no tax is payable on gifts that are received on the occasion of wedding.

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According to the Income Tax department, gifts received on the occasion of marriage are not taxable.

Apart from marriage, there is no other occasion when monetary gifts received by an individual is not taxed. Which means that monetary gifts received on occasions like birthdays, anniversaries, etc. are also taxed.

KL Rahul-Athiya Shetty wedding: Does Tax apply to gifts over the Rs 50,000-a-year limit?

According to Gauri, no tax will be applicable even though the permissible limit has been surpassed, as it is a gift received in marriage.

KL Rahul-Athiya Shetty wedding: Gifts received by friends are taxable, so in this case will there be any tax applied?

Wedding gifts given by friends are also not taxable.

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