Gift money

No clubbing provision are not attracted in this case &  gift deed is not necessarily required but this amount will not  be allowed as expense to your uncle

Thanks.

I do not understand why this gift not attract clubbing of income? It is not similar to person gifting his income to other to avoid taxation?  (Just wanted to ensure that all aspects are covered before I initiate the transaction)

Clubbing provisions are attracted because this planning is adopted when the person actually has the money but he shows it as tfd. to his wife or son's wife just to divert the income but in your case money is tfd. from paternal uncle which most probably would not be retnd. & also clubbing provisions are applicable only for Spouse,Minor Child & Son's wife . Refer Section 64 Series

                           Yeah.Completely agreed with Kuldeep jii........

Thank you so much Kuldeep,