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CASH GIFT FROM FATHER TO SON - Income Tax clarification

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Sanjeev Sharma

7 Points Posted on 31 December 2020

If father gives 10Lacs amount as cash gift to son & son submit the same cash to his saving bank account, Will it be considered under income tax or to be declared under other income ?
q1 - Will father has to declare the source of funds ?

q2 - Can son submitted 10L cash in bank in one go without any questions from IT department ? please suggest

Replies (5)

Quick Summary

This discussion clarifies income tax implications when a father gifts cash to his son. Gifts between close relatives like father and son are generally exempt from income tax, regardless of the amount. The father does not need to declare the source of funds for the gift. The son can deposit the cash into his savings account without immediate issues from the IT department, although there are daily deposit limits to be aware of.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 31 December 2020

No such income is from other sources and it is exempt
because it is between relative transaction and gift from father to son is exempt irrespective of amount

Sanjeev Sharma

7 Points Posted on 31 December 2020

Pls respond to q1 & q2 specifically

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 31 December 2020

Father should show the fund as gift to son, no source of funds is required.
Son can submit in one go in his bank account because gift from father is exempt under IT act