Student
3986 Points
Joined July 2018
1. According to sec 56(2)(x), any amount of money in the form of gift given to a relative will not be subject to tax in the hands of the recipient.
2. Father and son are covered under the definition of relative and thus cash amount accepted as a gift from father will not be taxable in the hands of the son.
3. However, as explained by expert it is a cash transaction and thus sec 269ST which restricts amount receivable in cash in excess of Rs. 2 lakhs,
i) in aggregate from a person in a day,
ii) in respect of a single transaction,
iii) in respect of a transaction from one event or occasion from a person.
4. So before accepting the gift make sure there is no violation of sec 269ST. Part-payment can be made since it is a gift from father to son. Otherwise, deposits can be made and transferred through the banking channel to avoid any kind of mishap in the future.
Please correct me if the above solution has an alternative view.