Tax Free Gift Limit 2026. If they wait until 2026, the exemption may sunset to around $7 million, meaning $3 million of the $10 million gift would be. Section 56(2)(x) of the income tax act of 1961 explains the tax implications of gifts received by an individual or hindu undivided family (huf).
Making outright gifts now will reduce the taxable estate and can be leveraged with. Any gift received from a relative as defined under the income tax act is not taxable in the hands of the recipient, irrespective of the amount received, in other words, there.