GIFT TO HUF BY MEMBERS

This query is : Resolved

CA. SANDEEP SHARMA (Querist)
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01 January 2020 an individual is taxed in 30% tax bracket. he is also Karta of his HUF. To save tax on FD interest he want to give gift money to his huf and do FD from HUF account. I have following questions related to this.

1 . is this gift allowed under income tax act..

As per my knowledge its not taxable in the hand of HUF.

Read with section 56(2)(X) AND Relative definition under explanation to clause (VII)
e) Relative means
(i)......

(ii) in case of hindu undivided family, Any member thereof.

Thanks in advance

swasti

swasti (Expert)
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02 January 2020 You are correct in your understanding. Gift by a member of a HUF to HUF is exempt as it comes within thedefinition of relative under section quoted.