Can an huf recieve/give gift?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 April 2012
Can an HUF give/receive gift to/from :-
1. members of HUF?
2. persons other than members of HUF?
What will be the Tax implications?
Please give a detailed reply on it.
1. members of HUF?
2. persons other than members of HUF?
What will be the Tax implications?
Please give a detailed reply on it.
14 April 2012
In Finance Bill 2012, a retrospective amendment w.e.f 1.10.2009 is going to be taking place by substituting a new clause ii) for Explanation (e) to Section 56(2)(vii) -
In the case of an HUF Relative menas ANY MEMEBER OF THAT HUF.
.
There is no Restriction for HUF in receiving the gifts. But gifts received above Rs 50000/- from persons other than relatives is treated as taxable under the head Income from Other Sources.
.
Gifts received from members of HUF are not taxable and can be accepted by the HUF.
However, Section 64(2) will play its own role. In such cases, income derived by the HUF from the amount received from members as a gift, is liable to be clubbed in the respective member's hand.
.
In the case of an HUF Relative menas ANY MEMEBER OF THAT HUF.
.
There is no Restriction for HUF in receiving the gifts. But gifts received above Rs 50000/- from persons other than relatives is treated as taxable under the head Income from Other Sources.
.
Gifts received from members of HUF are not taxable and can be accepted by the HUF.
However, Section 64(2) will play its own role. In such cases, income derived by the HUF from the amount received from members as a gift, is liable to be clubbed in the respective member's hand.
.
Message likes :
2 times
15 April 2012
Bafana ji have said right...
16 April 2012
In addition to Mr. Bafna kindly consider this also
Receipt of gift by HUF excluded from tax u/s section 56(2)(vii)
Any sum or property received by an individual or HUF without consideration/inadequate consideration shall not be taxable, as stipulated in the budget proposed.
The earlier intention of the provision was that any gift received by HUF from its members, if exceeded a stipulated benchmark of Rs 50000, would go on to be taxed under the head “Income from other sources” .However, in case of individuals, receipt from relatives were excluded from the purview of this section and was to be treated as non-taxable .The definition of relative (being on exemption list) will henceforth constitute members of HUFs also, and therefore form a barrier to invoke Sec 56(2)(vii).
Receipt of gift by HUF excluded from tax u/s section 56(2)(vii)
Any sum or property received by an individual or HUF without consideration/inadequate consideration shall not be taxable, as stipulated in the budget proposed.
The earlier intention of the provision was that any gift received by HUF from its members, if exceeded a stipulated benchmark of Rs 50000, would go on to be taxed under the head “Income from other sources” .However, in case of individuals, receipt from relatives were excluded from the purview of this section and was to be treated as non-taxable .The definition of relative (being on exemption list) will henceforth constitute members of HUFs also, and therefore form a barrier to invoke Sec 56(2)(vii).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- RCM - commercial rent paid to URP under GST
- Legal heir raised refund , but refund issued to the closed account of deceased.
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Offsetting interest income against derivative trading losses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
