Gift from HUF to a married daughter

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Hemali Shanghvi (Querist)
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20 June 2011 Hi,

My client's HUF has gifted his married daughter Rs. 3,50,000/- as gift. Is it taxable in the hands of the daughter? Earlier, he had done the same thing and in that year he had a scrutiny and no questions were raised on that by the IT officer.

Thanks in advance!!!

U S Sharma

U S Sharma (Expert)
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20 June 2011 married daughter was the co-pancer of the HUF, and still continuing, so its partial dissolution of HUF in favor of any member of HUF.

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Hemali Shanghvi

Hemali Shanghvi (Querist)
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20 June 2011 Hi Mr. Sharma,

Thanks for answering my query, but I am still a little unclear. Some one told me that since HUF is not a relative any gift from HUF is taxable. Is it the case?

U S Sharma

U S Sharma (Expert)
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20 June 2011 yes HUF does not have relatives, but it has members

check your HUF constitution, your daughters name is still in incometax records, so she got the amount as a member, not as a gift.

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