Cash Gift money from father to son

Cash Gift from Father to Son is Exempt u/s 56(2)(x) to any sum of money. Father is considered as a Relative under the definition of Income tax Act,1961.

Its Exempted ...

But please confirm that is the cash payment allowable above Rs. 10,000.00 to his son.

also please confirm that Is daughter in law recd rs 5 lac cash gift from her father in law also.

 

Nitin, First of all Cash Payment restriction of ₹ 10,000/- is applicable only to business transactions. Payment of Cash sum of money from father to son is not a business transaction. Hence it is allowable.

Section 56(2)(x)-
If gift is received by Daughter in law from Father in law at the time of marriage then it is fully exempt no matter what the amount of money it is. If it is recieved not on the occasion of marriage then it will be exempt as it received from Relative.

the amount is 5lacs and son is receiving from his father personal Income tax file to his income tax file as capital

Father in law can give gift to daughter in law as they are under relative definition. But interest or income earned by daughter in law from that gift amount is clubbed with income of father in law. please note this.

this is not a Father in law and daughter case

One of the above post refers to gift from father in law to daughter in law...

gift from relative is exempt
and such 5 lakh is already taxed under your father's income