That article still says that gift from husband to wife is not taxed in the hands of wife.
They went on to a later implication of the wife investing that money and clubbing that income from investment into the hands of the husband. This is a very old provision and is still valid in India. This was brought in as many business men were deducting salary given to wife, daughter etc. on paper. There is a chapter on clubbing provisions in the Income Tax Act. That is mainly to stop diversion of income to lower tax slab relatives. (Not only that year's income but also subsequent income from such transferred funds)
I would like to point out an interesting aspect in USA Income Taxes.
In the USA, husband and wife file joint Income Tax returns. Though the concept of "joint/family etc." is more stronger in India, USA joint concept is limited to Income Tax. In such a scenario, you do not need clubbing provisions.
I saw a strange case of two people filing joint return in USA who just had paper marriage so that the on-paper husband qualifies for a green card.
Coming back to our topic, John's question was
1. If that money transfer from his father to mother a gift
2. Should it be shown on the tax return.
The answer is a clear "No".
because if that fellow trump makes up his mind to tweet some rubbish, we may end up as paupers. so...... no covered all positions.
