if a son takes 5lacs cash money from his father IT file to his own IT file, is this will consider as other income for his son and will it consider as taxable income???
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.
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.
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.