03 October 2018
I plan to give cash gift to my father in law, to save tax on interest earned. Following is my understanding. Kindly confirm 1) Cash gift to my father in law is tax free unto any amount 2) I need to prepare a Gift deed as proof of gift 3) My father in law who doesn't come under tax bracket, ideally should file ITR, declaring the gift received from me.
Now would like to know, if I or my husband get the same money back from my father in law along with interest, 1) I believe we again need to prepare gift deed and show in our tax filing. 2) We will not have to pay tax on any amount received from my Father in law