Transferring of capital

Father may prepare a gift deed to gift Rs. 6 lacs in favor of his son. This gift will not be taxable in the hands of the son.

Mihir is correct. Your son will come under definition of Relative for Income tax purpose, Hence gift to him will not be taxable in the hands of your son. Gift to Relative or Non Relative will be treated as appropriation out of Post tax income. Appropriation can not be taken as deduction while computing Income tax. Hence father can not take deduction of gift he made to his son. As it is cash, you need to prepare gift deed in favor of you son. It need not to be registered as Gift of Immovable property only requires registration as per Transfer of property act and the Law relating to Registration of Documents. Thank you!