Senior Manager (F&A)
254 Points
Joined November 2009
Hello Rajat,
There is no restriction on HUF gifting money to your wife. However, if the aggregate amount of monetary gift received in the year from any person exceeds Rs 50000, then the entire amount of gift received is chargeable to tax under the head ‘Income from other sources’ [Section 56 (2)(vi)] of the Income-Tax Act, 1961. This section does not apply to gifts in kind.
so it would be taxable in the hands of your wife.
The clubbibg provisions are applicable only to the individuals so there would be no cluubing in the income of HUF.
Regards
Rajat