12 September 2012
Hello, Assuming Amitabh and Abhishek and father and sons respectively. And they have their own HUFs where they're karta.
1) a) Amitabh makes a gift of Rs.15 lac through cheque to Amitabh HUF. Now will this gift be taxed in hands of HUF under Sec 56(2)?
b) Amitabh HUF invests these funds in Fixed Deposit and Earns Rs.140000 as interest during the year. In whose hands will this income be taxed? Will it be clubbed in Amitabh HUF's hands?
2) Amitabh also makes a gift to Abhishek HUF(whose karta is Abhishek and Amitah is not the memer of the HUF) to the extent of Rs.10 lacs. Will this gift be taxed in Abhishek HUF's hands?.
13 September 2012
Reply to query 1. No, this gift will not be taxed in the hands of HUF. 2. Interest earned on such deposits will be taxable only in the hands of HUF. 3. not taxable in the hands of HUF.
13 September 2012
1. No 2. It will clubbed in the hands oh Amitabh. Sec. 64(2) 3. gift will be taxable in the hands of Abhishek(HUF) as amitabh is not relative. (For huf relative is its member.)
13 September 2012
1. No 2. It will clubbed in the hands oh Amitabh. Sec. 64(2) 3. gift will be taxable in the hands of Abhishek(HUF) as amitabh is not relative. (For huf relative is its member.)
19 September 2012
Vide amendment to sect. 56(2)in clause (vii) in explanation "in case of HUF, any member thereof" is included in term of relative w.e.f. 1st Oct. 2009, retrospectively.
1(a) Amitabh a member of Amitabh HUF is relative as per amendment, therefore gift of Rs. 15 lac will not be taxable in hand of Amitabh HUF u/s.56(2).
1(b). Interest earned by HUF will be clubbed in hand of ind. Amitabh as per sect. 64(2).
2. Gift will be taxable in hand of Abhishek HUF as gift is not from relative, being Amitabh is not member of donee HUF.
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