Anant Ambani gifted watches worth Rs 2 crore to celebs like Shah Rukh Khan, Ranveer Singh and others. Know how much tax will they owe on this?

Anant Ambani gifted watches worth Rs 2 crore to celebs like Shah Rukh Khan, Ranveer Singh and others. Know how much tax will they owe on this?

Summary: Short & Hot

Anant Ambani, the youngest son of billionaires Mukesh and Nita Ambani, recently married with Radhika Merchant in a lavish ceremony on July 12. Highlighting the opulent matter, Anant Ambani gifted watches worth Rs 2 crore to his groomsmen limited-edition Audemars Piguet luxury watches (about Dh879,000 each).

If Anant Ambani acquired these watches in the names of Ranveer, Shahrukh and others, they will be required to pay tax on the market value because it is considered a monetary gift (which is taxable).

Anant Ambani, the youngest son of billionaires Mukesh and Nita Ambani, recently married with Radhika Merchant in a lavish ceremony on July 12. Highlighting the opulent matter, Anant Ambani gifted watches worth Rs 2 crore to his groomsmen limited-edition Audemars Piguet luxury watches (about Dh879,000 each).

Anant- Radhika Wedding Highlights

This magnificent gesture soon grabbed attention, especially since celebrities like Ranveer Singh and Shahrukh Khan were among the groomsmen, showing off their gifts in a viral video.

While these lavish presents surely made the recipients happy, but on the other side they also raised an important question that how much tax will they have to pay?

Anant- Radhika made for each other

While gifts/ presents are always welcomed, a huge gift may raise questions regarding the tax implications. Let’s see how gifts are subject to tax in India.

Gifts can be tax-exempt in India under certain situations, such as monies received on the occasion of a marriage or presents from relatives.

For example, any payment donated to Radhika Merchant or Anant Ambani during their wedding would be excluded. However, the presents Anant Ambani gave to his friends were not granted the same immunity.

Definition of Gift as per the Indian System

The Gift Tax Act of 1958 was repealed in 1998, therefore gift taxation falls fully under the Income Tax Act. The Income Tax Department divides gifts into three categories: monetary gifts, the second is movable property gifts (such as artworks and jewellery), and third is immovable property gifts (such as residential property).

Let’s Know, Will Ranveer, Shahrukh, and others have to pay taxes for Anant Ambani gifted watches worth Rs 2 crore ?

The tax exemption is only available if the aggregate value of presents received does not go beyond Rs 50,000 per year. When this threshold is crossed, the entire sum is liable to taxation.

The threshold has been breached in the case of these expensive watches, which can cost up to Rs 2 crores each.

Now let us know if Ranveer, Shahrukh, and others have to pay taxes for Anant Ambani gifted watches worth Rs 2 crore ?

Expert Note-

If Anant Ambani acquired these watches in the names of Ranveer, Shahrukh and others, they will be required to pay tax on the market value because it is considered a monetary gift (which is taxable).

Any gifts that fall outside of these requirements are nevertheless subject to taxes. Gifts taken from friends are also taxed if their worth exceeds Rs 50,000 per year. The receiver is responsible for declaring any gifts that exceed the authorized amounts. The value of the present must be reported under ‘Income from Other Sources’ by the person receiving it, and the applicable tax slab will be applied to the gift based on its value.

Tax Exemption For Gifts

• The rule specifies that gifts of up to Rs 50,000 received in a single financial year are exempt from tax. However, if the cash or gift amount surpasses the threshold, every single present is subject to tax.
• Furthermore, the authorities exempt any presents received from close family from taxation. Close relatives include the individual’s spouse, their sibling, parent’s siblings, grandparents or in-laws, and grandkids.
• Gifts a bride or groom receives during their marriage are tax deductible. This exemption applies to all types of gifts, including cash, jewellery, land, and cars.
• Any monetary or non-monetary gifts received from these individuals are tax-exempt, regardless of their value. However, if the individual derives any income from the gift, then such income will be taxable.

Anant- Radhika Wedding Highlights

Anant- Radhika made for each other