Cash deposit in child account by father

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This discussion explores the tax implications of cash deposits into a child's bank account. It addresses whether a father depositing a significant sum for educational fees makes the amount taxable for the child, and questions the source of the father's funds. Additionally, it considers treating a cash deposit from a friend as a gift rather than a loan to potentially avoid penalties.

RAKESH

RAKESH (Querist)
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30 October 2021 Sir ,

Suppose cash deposited in child bank account by his father Rs 210000/- to pay his institute MBA fees . Can this amount taxable in child part .

Secondly- If some friend deposit Rs 50 k in cash . this amount is taken as loan . But can we show this amount as gift from friend so that we can get rid of penalty u/2 271 D .