My father-in-law (my husband’s dad) has FDs to the tune of 40 Lakhs on which he earns interest of 7.3% per annum and no other income. Additionally I would like to gift 80 lakhs INR to him from my professional income. From a taxation standpoint do I or my father-in-law needs to pay any tax? He would be further investing this amount in Senior Citizen savings scheme. Is he liable for any tax under the new tax regime?
Gifting money to your father-in-law is generally possible, but the tax treatment depends on the applicable gift-tax rules and the relationship category.
Keep proper bank records and a written gift declaration to document the transfer clearly.