CA
397 Points
Posted on 25 May 2017
The transfer must be made from legitimate tax paid funds in USA.
During an income tax assessment, the AO can ask his father to prove the genuineness and identiy of the donor and that of the source of funds. If not, the income can be treated as undisclosed income u/s 68 - read this post: Gift by NRI to Resident: Also be aware of Section 68 of ITA
In case of gift, FEMA provisions will also apply - read this post for more clarity: FEMA Implications on NRI Gift Transactions: A Scenario-wise Analysis
Have in place a gift deed on plain paper executed in duplicate signifying mutual intention of both parties.
Thanks!