Dear Querist,
Gifts between husband and wife, father and son, and other specified relatives are legally valid and are generally not taxable in the hands of the recipient under the Income-tax Act.
However, in the case of gifts between spouses or transfer of personal assets to an HUF, the income arising from such gifted assets may be taxable in the hands of the donor due to the clubbing provisions. Gifts between father and an adult son do not attract such clubbing.
Ensure all transfers are made through banking channels and, for substantial amounts, maintain a simple gift deed and supporting records.
For a more detailed review of your case, you may book a phone consultation.
CA Shubham Goyal
