I am new to multithreading & socket programming in Java. I would like to know what is the best way to implement 2 threads - one for receiving a socket and one for sending a
Wanting to create threads in an application is not absurd! You won't need exactly 2 threads, but I think you're talking about 2 classes that implement the Runnable interface.
The threading API has gotten better since Java 1.5 and you don't need to mess with java.lang.Thread anymore. You can simply create a java.util.concurrent.Executor and submit Runnable instances to it.
The book Java Concurrency in Practice uses that exact problem - creating a threaded socket server - and walks through several iterations of the code to show the best way to do it. Check out the free sample chapter, which is great. I won't copy/paste the code here, but look specifically at listing 6.8.