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Cash Gift money from father to son

om sarma (Independent Accountant) (37 Points)

22 August 2019

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???

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9 Replies

Nishant Singh (CPT) (39 Points)
Replied 22 August 2019

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.

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praveen (Expert) (350 Points)
Replied 22 August 2019

Its Exempted ...

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Nitin Gupta (Accounts Officer) (30 Points)
Replied 22 August 2019

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.

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Nishant Singh (CPT) (39 Points)
Replied 22 August 2019

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.

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om sarma (Independent Accountant) (37 Points)
Replied 22 August 2019

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

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Kapadia Pravin (17249 Points)
Replied 22 August 2019

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.

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