Income Return filing for Gift Tax

[Guest]

Sir,

My father-in-law would like to give me ₹ 20 lack IN CASH as gift. I am an income tax payee. Since, he comes under “Relatives”, it is a tax fee income to me. Please clarify following.

1. Should I require to show the amount in my ITR OR Alternatively, can I make a Gift Deed in plain paper both signed (for source) ?
In ITR, it is not possible to show under head “Income from other sources”, and also there is no provision under head “Exempted Income”.

2. Should I deposit the cash in a Bank, or can I keep it cash as long as I want.

AI Summary

Cash Gift from Father-in-Law: Tax-Free, Report in ITR, Execute Gift Deed for Documentation and Bank Deposit. An individual inquired about the tax implications of receiving a cash gift of 20 lakh from their father-in-law, who qualifies as a relative, making the gift tax-free. They asked whether the amount should be reported in their Income Tax Return (ITR) and if a gift deed is necessary. The response advised executing a gift deed to document the source of the funds and suggested depositing the amount in a bank, using the gift deed as evidence of the transaction.