If i transfer 50 L to 1 Cr to my father as GIFT do i need to create any documentation [Gift Deed so no tax liability comes on my father on receiving this money ] for this or just online transfer.
Does it need to ne reported any where
- Taxable? No, gifts to parents are fully tax-free under Section 56(2)(x).
- Gift Deed Needed? Strongly recommended for large amounts (₹50L–1Cr) to serve as legal proof against tax inquiries, along with bank transfer records.
- Where to Report? Your father should declare it as Exempt Income in his ITR; any interest earned on it later will be taxed under his name.