Income clubbing for parents

Prabhat Singh (CFA) (2 Points)

10 June 2021  

Son gifts around 30 lakh to his senior citizen mother, mother invest it to gain some income (from stocks & F&O).  Will this income be clubbed with sons income since fund source was from him?  (I heard that clubbing not applicable in case of parents).
Also, will gift tax be applicable for parents?

Some says income will be clubbed whereas some say it will not
E.g. following blog by a CA says clubbing not applicable - https://www.charteredclub.com/tax-fd-mother-father/

Does anyone here have clarity on this?