Treatment of cash gift given to daughter in law, and how it is taxed?

This query is : Resolved

Virendra (Querist)
Follow

02 April 2025 my tax consultant told me that as per the new amendment in the recent budget, the person receiving the cash gift will be fully exempt. however the person who is giving such gift will be taxed as per the individual slab of income tax (not on the full value of cash gift but on the income earned out of the funds invested from the cash gift in accordance to the declaration from the receipient). is it true?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

02 April 2025 There is no amendment, the rule prevails. It is known as clubbing of income. The income earned by daughter in law will be taxed in the hands of FIL. You cannot give cash gift of an amount equal to or more than 2 lakhs.