SIR/ MADAM, suppose, a husband gives gift of money to his wife, by transferring the amount into her bank a/c, by cheque. After 10 days, the wife gifts the amount , (which was received as gift from her husband ) to her son. The husband has paid income tax on the amount of such gift given to wife. QUE. 1. CAN THE AMOUNT RECEIVED AS GIFT FROM ONE RELATIVE (husband) , BE GIVEN AS GIFT, TO OTHER RELATIVE (son)? AND CAN IT BE DONE, IN THE SAME FINANCIAL YEAR? IS THERE ANY DEFAULT OR BREAKING OF ANY RULE/REGULATION /ACT/LAW , IN DOING SO ? ( I have confusion about this, because I had read the gift deed format, in which it is to be declared by the giver of gift, that the owner of the amount,which he is gifting to someone by that gift deed, is - he, himself. And no any other person is the owner of such amount being gifted. ) Taking into consideration the above lines of gift deed, Can it be said that , before gifting the amount to son, the mother has the ownership of that amount (which was received as gift by her from her husband) ? QUE. 2. The wife has earned the bank interest (4%), for those 10 days, on that amount received as gift from husband. Will such 10 days' interest be clubbed in the income of husband? QUE. 3. The son has made F.D.s in his own name, out of the amount received as gift, from his mother. WILL THE INTEREST EARNED ON SUCH F.D.s, BY THE SON , BE CLUBBED INTO THE INCOME OF HIS MOTHER / OR / FATHER ? OR will it be the son's own income and to be shown in son's own income tax return? QUE. 4. IF, The son pays the income tax on the interest earned on above mentioned F.D.s and all of his other incomes, and after that, in next financial year, IF, the son wants to gift any amount to her mother , then, can the son gift like this? Is it valid and within the limits of rules/regulations/acts/laws in force in this regard, to do so ? If he gifts back to her mother any amount, in such manner, then will clubbing provision be applicable, for the amount earned as interest on FD s, during past year ? IN SHORT , CAN A PERSON GIVE ANY AMOUNT BACK AS GIFT TO THE OTHER PERSON, FROM WHOM HE HAS RECEIVED ANY AMOUNT AS GIFT ?