Income Return filing for Gift Tax, Income Tax

[SATHEES KUMAR]

Sir,

My father-in-law would like to give me ₹ 20 lack IN CASH as gift. I am an income tax payee. Since, he comes under “Relatives”, it is a tax fee income to me. Please clarify following.

1. Should I require to show the amount in my ITR OR Alternatively, can I make a Gift Deed in plain paper both signed (for source) ?
In ITR, it is not possible to show under head “Income from other sources”, and also there is no provision under head “Exempted Income”.

2. Should I deposit the cash in a Bank, or can I keep it cash as long as I want.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

It is better to execute gift deed between you and father-in-law. You may deposit the amount in the bank and you can give evidence of the gift deed for source.