Hello Sir, we met again and  in relation to gifts 

Yes, you may gift and this gift shall also not be taxable.

Although it is not mandatorybut It is highly recommended to have a gift deed to avoid any litigations ,. Altough gifts to relatives are exempted u/s 56(2)(vii) but income earned by investing that money (if any) shall attract clubbing provisions u/s 64(1)(iv) [in case of spouse] & u/s 64(1A) in case of minor child

64(1)(iv) subject to the provisions of clause (i) of section 27, to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to live apart ;

64(1A) In computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child, not being a minor child suffering from any disability of the nature specified in section 80U :

If your objective is tax planning then rather go for a LOAN AGREEMENT , which can be interest free. You can keep the term to say 10 years also and clubbing provisions shall not be applicable. DO NOTE THAT loan has to be made via bank [ECS,cheque etc] and not in cash so that provisions of S.269SS and 269T are not attracted.

Gift Of Money To Grand Son

LET IT BE KNOWN TO ALL by this Deed of Gift that I, …………….. S/o…………… R/o……………….. do, hereby, out of natural love and affection and also out of my free will and without any force, compulsion or undue influence, transfer an amount of Rs………….. to my grandson Mr……….. X ……… S/o……….. R/o……………. as he requires money for setting up a small scale industry of ………………………..

IN WITNESS WHEREOF, I have signed this deed of gift on …………………….

In presence of

Witnesses: Sd/-Donor……….

1……………..

2………………..