Home / Money / Q&a /  What is the limit up to which a father can gift to his son under income tax laws
Listen to this article

Please advise if one can give gift to his son for purchase of flat and if yes are there any limit for such gift under the tax laws? 

Under the present tax laws there are no restrictions on giving gift to any person. However, in certain cases the clubbing provisions apply in respect of income derived by the person receiving from the gifts. Like for gifts made to daughter in law and one’s spouse, the income accruing due to the asset transferred is required to be clubbed in the hands of the person giving the gift. 

As regards incidence of tax at the time of making the gift is concerned, as per the Indian tax laws gift received by a person, generally, become taxable in his hands in case aggregate of all the gifts received by a him during a year exceeds fifty thousand rupees. As long as the sum of all the gifts received during the year does not exceed the threshold of fifty thousand rupees it is fully exempt but whole of the amount becomes taxable once it crosses the threshold of fifty thousand. However, there are certain exception to the rule of gifts becoming taxable in the hands of a recipient. One of such exception is in respect of gifts received from certain specified relatives. The relationship of father and son is covered under the definition of “specified relatives". So a father can give any amount of gift to his son without any tax implications for both. Please note that as per the present provisions of tax laws in case a person accepts any gift beyond Rs. two lakhs in cash, he may become liable to a penalty equal to the amount of gift accepted in cash. So avoid accepting gifts beyond two lakhs in cash.

Balwant Jain is a tax and investment expert and can be reached on and @jainbalwant on Twitter

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout