As regards incidence of tax at the time of making the gift is concerned, as per the Indian tax laws gift received by a person, generally, become taxable in his hands in case aggregate of all the gifts received by a him during a year exceeds fifty thousand rupees. As long as the sum of all the gifts received during the year does not exceed the threshold of fifty thousand rupees it is fully exempt but whole of the amount becomes taxable once it crosses the threshold of fifty thousand. However, there are certain exception to the rule of gifts becoming taxable in the hands of a recipient. One of such exception is in respect of gifts received from certain specified relatives. The relationship of father and son is covered under the definition of “specified relatives”. So a father can give any amount of gift to his son without any tax implications for both. Please note that as per the present provisions of tax laws in case a person accepts any gift beyond Rs. two lakhs in cash, he may become liable to a penalty equal to the amount of gift accepted in cash. So avoid accepting gifts beyond two lakhs in cash.