Huf

This query is : Resolved

swasti (Querist)
Follow

28 November 2014 According to Sec 56, a HUF can receive gift from any of its member, since member of HUF is considered to be a relative in Income Tax Act 1961.

Can a HUF give taxfree gift (movable / immovable) to any member of HUF?

Rupesh Jain

Rupesh Jain (Expert)
Follow

28 November 2014 GIFT WILL NOT TAXABLE BUT INCOME FROM THE GIFT WILL TAXABLE IN HAND OF HUF.

swasti

swasti (Querist)
Follow

28 November 2014 But clubbing provisions u/s 64(2) states that if gift is made by individual to HUF and if any income arises out of that then clubbing would be made in the hands of individual.

Upgrade to CAclubindia Pro. Subscribe Now!

Rupesh Jain

Rupesh Jain (Expert)
Follow

29 November 2014 this section tell the clubbing of income arise from the gift. gift is not taxable .

yes it is correct. as 64(2)