Gift / Property below FMV Declaration (Section 56(2)(x) / Section 92)
Record a gift or a purchase below fair market value and whether it is exempt or taxable in the recipient's hands.
Law version: Up to FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
Money, property or shares received without consideration, or for less than fair market value, can be taxed as income of the recipient if the amount exceeds ₹50,000. This was Section 56(2)(x) of the Income-tax Act, 1961 for receipts up to 31 March 2026; from 1 April 2026 it is Section 92 of the Income-tax Act, 2025. Gifts from relatives, on marriage, by will or inheritance, and certain other receipts are exempt. The declaration records the facts so that the treatment in the return is supported.
When it is used
- Receiving a gift of money or property from a relative.
- Buying property or shares below their fair market value.
- Gifts received on marriage.
What the template covers
- Recipient name, PAN and address
- Type and date of receipt
- Donor or transferor and relationship
- Fair market value and consideration paid
- Taxable amount, if any
- Date and place
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Declaration
Date; Place
Recipient
Recipient Name; PAN; Address
Receipt
Type of Receipt; Date of Receipt; Donor / Transferor Name; Relationship to Recipient
Valuation
Fair Market Value (₹); Consideration Paid (₹, if any); Taxable Amount (FMV − Consideration, ₹)
Stamp duty, registration and filing
The ₹50,000 limit and the list of relatives are unchanged in the 2025 Act. For immovable property, the stamp duty value is compared with the consideration, and the difference is taxed only if it exceeds both ₹50,000 and 10% of the consideration. A gift deed is advisable for large gifts, and immovable property needs a registered deed. Check the current exemptions on incometax.gov.in.
The section quoted follows the date of receipt: Section 56(2)(x) of the 1961 Act up to 31 March 2026, Section 92 of the 2025 Act from 1 April 2026. The ₹50,000 limit and the list of relatives are unchanged.
Generate the Gift / Property below FMV Declaration (Section 56(2)(x) / Section 92)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. TDS returns, ITR)? Contact SKAG and Associates
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Frequently asked questions
Are gifts from relatives taxable?
No. Gifts from relatives as defined in the law, such as parents, spouse, siblings and their spouses, are exempt whatever the amount.
Are gifts from friends taxable?
Yes, if the total of such gifts in a year exceeds ₹50,000; the whole amount is then taxable.
Is a wedding gift taxable?
Gifts received on the occasion of the recipient's marriage are exempt.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.