Cash gift by grand mother to her grand daughter

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Venkateshwarlu Pulluri (Querist)
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20 March 2026 one grand mother is willing to transfer an amount of 50 Lakhs to her as a gift with love and affection on her grand daughter to survive herself in future, since she is no support of father, only mother is caring now,

is income tax applies on said cash gift to donee, since doner sold out her house property, out of said source she willing to transfer said amount.

please guide me in this regard.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 March 2026 Donor has sold out her HP, so check capital gain liability over the transaction. Tax liability arises over the sell transaction; no tax liability over donee for gift received from her grandmother.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 March 2026 👉 Gift from grandmother to granddaughter:
✔ Tax-free under Section 56(2)(x)

BUT

⚠️ Must ensure:
• NOT in cash
• Proper documentation maintained

Mention in gift deed:

“Given out of natural love and affection, without consideration, and from explained sources”

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