Gift by huf
This query is : Open
24 March 2012
WHETHER HUF CAN GIFT TO ITS MEMBERS, OR IT IS INCLUDED IN 50,000 RS. FROM ANYONE?
24 March 2012
basically any sum recd from HUF is exempt under section 10(2) in the hands of its members.
In Vineetkumar Raghavjibhai Bhalodia v. Income Tax Officer (2011) 40 (II) ITCL 2 (Rkt-Trib) during the course of assessment proceedings AO noticed that the assessee had accepted gift of Rs. 60 lakhs from R HUF and Shri RB of Rs.40 lakhs on 21-03-2005. The AO was of the view that HUF is not covered in the definition of “relative”. Therefore, the gift of Rs.60 lakhs received from the HUF was held to be taxable. The CIT(A) confirmed the view of AO. The CIT(A) further observed that if the legislature wanted that money exceeding Rs. 25,000 received by the member of the HUF from the HUF is also not chargeable to tax, it would have specifically mentioned so in the definition of “relatives”.
It was held that the “relative” explained in Explanation to section 56(2)(vi) of the Act includes “relatives” and as the assessee received gift from his “HUF”, which is “a group of relatives”, the gift received by the assessee from the HUF should be interpreted to mean that the gift was received from the “relatives” therefore the same is not taxable under section 56(2)(vi) of the Act.
CA MANOJ GUPTA
JODHPUR
09828510543
In Vineetkumar Raghavjibhai Bhalodia v. Income Tax Officer (2011) 40 (II) ITCL 2 (Rkt-Trib) during the course of assessment proceedings AO noticed that the assessee had accepted gift of Rs. 60 lakhs from R HUF and Shri RB of Rs.40 lakhs on 21-03-2005. The AO was of the view that HUF is not covered in the definition of “relative”. Therefore, the gift of Rs.60 lakhs received from the HUF was held to be taxable. The CIT(A) confirmed the view of AO. The CIT(A) further observed that if the legislature wanted that money exceeding Rs. 25,000 received by the member of the HUF from the HUF is also not chargeable to tax, it would have specifically mentioned so in the definition of “relatives”.
It was held that the “relative” explained in Explanation to section 56(2)(vi) of the Act includes “relatives” and as the assessee received gift from his “HUF”, which is “a group of relatives”, the gift received by the assessee from the HUF should be interpreted to mean that the gift was received from the “relatives” therefore the same is not taxable under section 56(2)(vi) of the Act.
CA MANOJ GUPTA
JODHPUR
09828510543
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24 March 2012
SIR I AM REALLY THANKFUL TO YOU. BUT I HAVE RECEIVED THE OPINION FROM SOME PEOPLE THAT HUF CAN NOT BE CONSIDERED AS A RELATIVE W.E.F 1/10/2009
24 March 2012
GENERALLY A MINOR'S INCOME IS CLUBBED IN PARENTS HAND. BUT IF A MINOR'S INCOME IS EXEMPT INCOME THAN CAN IT BE CLAIMED AS EXEMPT IN THE HANDS OF PARENT?
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