20 December 2015
MY DAUGHTER RECEIVED A GIFT OF 500000 FROM MY BROTHER. CAN SHE GIVE THIS AMOUNT AS INTEREST FREE LOAN TO MY HUF. MY HUF WILL LOAN THIS AMOUNT TO A PARTNERSHIP FIRM IN WHICH ME AND MY BROTHER ARE PARTNER. WHAT ARE THE TAX IMPLICATIONS. PLEASE GUIDE. MY DAUGHTER IS A MINOR.
20 December 2015
01. Gift is received from uncle i.e. brother of either parent and hence not taxable as income from other sources in the hands of minor. 02. Minor can very well give the loan to your HUF. But mind you, the minor has right to change the so called condition of interest free loan, once she attains majority. And that may turn out to be inconvenient once she attains majority. Please be careful 03. HUF can always give loan to anybody as the karta of huf deems fit
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