The Economic Times News

Gifts to daughter-in-law are tax-free, but parents-in-law pay tax on income; Why Budget 2026 should fix this anomaly

Gifts to daughters-in-law are tax-free, but income from these gifts is taxed to parents-in-law due to an outdated clubbing rule. This provision, intended to prevent tax evasion, now unfairly burdens senior citizens and can lead to disputes. Budget 2026 is an opportunity to reform this rule, aligning tax law with modern realities and cultural practices.