Sir as a Father in law can I receive gift from my daughter in law.

Ans: Dear Subhash,
Since I only have your version of the story, I can only assume that you are going through a rough patch. But I do believe it takes two sides in any story. Why is it that your daughter-in-law wants to all of a sudden behave this way? Were things fine in the initial years of marriage?
Why the sudden demand of money from you when you say that she is well-placed? Surely something seems amiss here.
Anyway, it is worrisome when your own people behave in this way. You are also justified in feeling that she may make a false complaint. Where is your son's mind in this matter? I think he should also be worried about the way things are changing. Is he unable to or has he tried to talk to his wife? At this point, let no one else interfere and let him be the sole person to deal with her.
He knows the challenges at home and will know what to do. So kindly request your son to step in (if he hasn't already done that) and sort this out in the most amicable manner. This first step will then determine the future course of action.
Having said this, I do want the family to recall if there has been any instance that has triggered your daughter-in-law to act this way. That will give you an idea to proceed in the right direction.

Best wishes!

Ans: Your relation comes under the Lineal Relationship of Spouse, hence you may make a gift to your father-in-law & it will not attract any Income Tax. However, you should adopt proper procedure to make a gift.
Most welcome for any further clarification. Thanks.

Ans: Yes. Any Gift received from Father in law, is not your income but gift. Hence, it is not subject to income tax.
Most Welcome for any further clarification. Thanks.