Gift to huf....

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2011 My client is in Jewellery Business...
He lends money on Gold...
He has created a HUF and wishes to do the lending business in the name of HUF...
The HUF is created by Rs 25,000 received as Gift from Karta's sister...
Now since more money is required to do the business, how can i create the wealth of the HUF???
Can the member's of the HUF gift money to the HUF???
Is the income received on those gifts taxable in the hands of the Individual..???
Please advise any other factors which u think fit for the above case...
Thank You...

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)
Follow

28 July 2011 Dear sir,

As per my knowledge on HUF, HUF can start business from their own funds created/received from HUF property. Otherway is to get fund from gift or from income of HUF. HUF members can give gift to HUF and non members also can gift to HUF by way of a proper gift deed declaring that it will be a gift to HUF.