Huf

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Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 Can an HUF gift Rs.5 lac to the karta sister on the occasion of marriage

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 October 2012 It is HUF's property. HUF can give Gift to anybody. Since Gift is received on occasion of Marriage no Tax Liability arises in the hands of recipient.

Pankaj Gupta

Pankaj Gupta (Expert)
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10 October 2012 Huf can't make gift of huf property to co-parcener or non co-parcener. Any gift made by huf are void ab initio.the gifted property shall be included in the wealth of huf and not donee.similarly the incomes from so gifted property will be taxable in the hands of huf.

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Pankaj Gupta

Pankaj Gupta (Expert)
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10 October 2012 In the above case occasion of marriage will not be considered as the gift is void from the very beginning.

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 WHY HUF CANNOT MAKE GIFT IS THERE ANY PROVISION? PLEASE ENLIGHTEN

Pankaj Gupta

Pankaj Gupta (Expert)
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10 October 2012 Huf is not created through any contact, rather it is a creation of law which is created for the benefits of members. Any asset of the family can't be given to any person (whether member or not) without adequote consideration. Assets can be distributed only at the time of partition of huf and that too to only members.(member of huf includes only father, sister and daughter.

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 If HUF gives gift to a relative ie cousin sister (Chachaji daughter)on the occasion of marriage can we claim exemption in the definition of relative.
Moreover why cant huf be considered as a group of relative as per the intemtion of the legislature

Pankaj Gupta

Pankaj Gupta (Expert)
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11 October 2012 Ist of all I want to rectify my answer above. Huf consist of father, daughter and SON.I typed sister by mistake. Secondly I wants to clarify that huf is governed by hindu succession act, which says that huf can only use the family asset and that too for the benefit of family members. Therefore It can not give gift.

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Pankaj Gupta

Pankaj Gupta (Expert)
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11 October 2012 The line "GIFT FROM ANY RELATIVE" u/s 56(2)(vii) is applicable only in case of individual. Ie it cannot be said that huf is a relative of anyone. Moreover the meaning of relative has ben specified in the same section. Huf is not covered under that defination also.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 CANT WE REFER TO THE CASE LAW OF VINEETKUMAR RAGHAVJIBHAI BHALODIA VS ITO (ITAT RAJKOT)

Pankaj Gupta

Pankaj Gupta (Expert)
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11 October 2012 In that case gift was given to the member of huf. And karta's sister is not a member of huf. As I specified earlier that member of huf includes , father, sons, and daughters only.