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.
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.
CAclubindia
