Gifts in cash

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Receiving a cash gift of Rs. 2 lakh or more from your father-in-law might be subject to tax regulations, specifically Section 269ST, which limits cash transactions. While gifts from 'relatives' under Section 56(2)(x) are generally exempt, any income generated from that gifted amount could be taxable in the hands of the donor due to clubbing provisions.

ravi

ravi (Querist)

08 April 2025 Dear All,
Kindly let me know, if my wife received Rs.2,00,000/- in cash from my father (Her father-in-law) will it be taxable or not.
Thanking you
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 April 2025 Section 269ST prohibits any person to receive an amount of Rs.2 lakh and above in cash:

In aggregate from a person in a day, or
In a single transaction, or
In respect of transactions relating to one event or occasion from a person.

So any amount less than Rs. 2 lakhs received by DIL from her FIL will be tax exempt, but clubbing provision u/s. 64 will be applicable.

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ravi

ravi (Querist)

08 April 2025 Sir if the amount is 1.75lakh, it will taxable or not

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 April 2025 Not taxable. The gift would be exempt under sec 56(2)(x) IT act; as FIL being 'Relative' to DIL.
But the income earned (if any) over the gifted amount by DIL; would be taxable in the hands of 'Donor' under the clubbing provision.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 September 2025 Good luck..

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