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Loan or Gift From Son to Father???

12 July 2021

Loan or Gift from son to father, Which option is best in Cash transaction?

How much amount permissible in a year?

What is the procedure to do this transaction?

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6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 July 2021

Max limit for acceptance of loan is <20k otherwise violation of section 269SS.

Any gift from son to father is not taxable under income tax. Max limit for receipt of cash gift would be <2 lacs to avoid violation of 269ST.

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Rajat Singhal (95 Points)
Replied 12 July 2021

Can we show 2L in single transactions or Gift declaration are required or not?

Ankita Jain (CA in practice) (185 Points)
Replied 12 July 2021

For large transactions, it is always better to create a gift deed. You can show below 2L for single transaction in cash. Otherwise, there will be voilation of section 269ST