Gift by karta of huf to his son
This query is : Resolved
13 December 2013
Sir,
There is a HUF with following members :
1. Father
2. Mother
3. Son
4. Daughter
Can the Karta i.e. Father gift cash to his son / daughter?
If the answere is in affirmative, what are the tax implications to the HUF and the Son.
Presume that both the HUF and the Son are having income in excess of the basic exemption limit.
Thanks.
There is a HUF with following members :
1. Father
2. Mother
3. Son
4. Daughter
Can the Karta i.e. Father gift cash to his son / daughter?
If the answere is in affirmative, what are the tax implications to the HUF and the Son.
Presume that both the HUF and the Son are having income in excess of the basic exemption limit.
Thanks.
13 December 2013
Father can gift his own money to his son/daughter. There is no tax on such gifts from/to relatives.
.
.
13 December 2013
Sir,
Thats fine but, can father gift to his son from the properties (assets) of the HUF.
Thats fine but, can father gift to his son from the properties (assets) of the HUF.
13 December 2013
All the members have right on the property of the HUF.
.
So like father/karta the property (assets) belongs to all the members.
.
There is an indirect restriction on gifts to members in the name of "Partial Partition"
under which the income and asset remains with the HUF only -for Income Tax purpose
.
Looking to this, gifts of higher value may
be problematic but Occasional gifts of small value can be given to the members.
.
.
So like father/karta the property (assets) belongs to all the members.
.
There is an indirect restriction on gifts to members in the name of "Partial Partition"
under which the income and asset remains with the HUF only -for Income Tax purpose
.
Looking to this, gifts of higher value may
be problematic but Occasional gifts of small value can be given to the members.
.
13 December 2013
1. A reasonable amount can be gifted to son/daughter.
.
2. A provision may also be made for the education/marriage of the son/daughter.
.
3. The answer is "affirmative" in all the circumstances described by you in the query.
.
2. A provision may also be made for the education/marriage of the son/daughter.
.
3. The answer is "affirmative" in all the circumstances described by you in the query.
13 December 2013
You can refer sec 56(2) in addition to above explanation for exact provision of law.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
