First of all where did that Rs.13.1 lakh come from to be given as gift to family members. Father earns the money of 13.1 lakh and then gifts to familiy members, Tax is paid on 13.1 lakh income by the father. Howewer if he gifts the amount to familiy members and they deposit the amount in FD they are not liable for any interest on these deposits.
You can give money to your dependents only after paying tax. The money received by the dependents is not considered as a Income for them and they need not pay tax, but the interest they earn on that money is taxable.
