income tax rule on the gift given by the father to the son

According to the existing tax laws in India, if a person gives a gift of less than Rs 50,000 in a year to another person, in such a situation, he will not have to pay any tax. But, if a person receives an amount more than Rs 50,000 as a gift, then he will have to pay tax on this amount in excess of Rs 50,000.

According to the tax laws, if a father gives an amount exceeding Rs 50,000 to his son as a gift, then he will not have to pay any kind of tax in it. Such relationships come under the clause of ‘specified relatives’.

Along with this, no person in India can take cash gift of more than Rs 2 lakh. If you take cash gift of more than Rs 2 lakh, you will have to pay a penalty of the same amount to the Income Tax Department. This rule does not apply to immovable property.