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Is gift given by grandfather to the grandson huf exempt?

Indudhar (Tax Advocate) (427 Points)

09 March 2013

Hello Friends;

A grandfather is having funds in the firm and is willing to give gift to his grandsons HUF.

Is such gift exempt?

plz guide me..

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2 Replies

(Guest)

Grand father covered under relative.

u/s 56 (2) (vii) of the I.T ACT

therefore gift given by grand father to his grand son's will be exempted from tax in individual capacity. but for HUF-any member thereof will be exempted not grand father.

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shikhar (LEARNER ) (1394 Points)
Replied 09 March 2013

heloo friend...........................

As per section 56 of income tax act....................grand father can give gift to his grand son, NO TAX WILL BE LEVIED.

BUT IN YOUR CASE ...........first gift is recived by the person (grand son) in individual account................. then he can tranfer it to its HUF.............................

NO TAX WILL BE LEVIED.

THANK YOU