Gift from huf to members
This query is : Resolved
05 January 2015
Whether HUF can make a tax free gift (in the form of money out of HUF income) to its members, further any income earned out of such gift in money like interest income will be clubbed in HUF income or not.
05 January 2015
it is exempted under explanation u/s 56(2).
05 January 2015
There will no clubbing provisions applicable in the hands of HUF in this type of transaction and HUF can make gift to its members.
06 January 2015
The experts are correct but they have examined this issue from one angle. The other angle is once HUF is giving gift to its member it is not the case of individual and therefore, consent of all the members are required. Now the question arises can you gift to yourself. The answer is no because the gift includes a share of the member to whom HUF is gifting the money. Another problem is once you are gifting HUF properties you are violating the provisions of section 171 (now it is not there) this means you are doing partial partition which is not permitted and the ITO can continue to treat the gifted property as belonging to HUF and any income arising on the gifted property can be taxed in the hands of HUF. To give effect to the HUF properties you have to do full partition by paying proper stamp duty.
Message likes :
1 times
06 January 2015
Thank you for enlightening us the other issues Agarwal saheb.
06 January 2015
thanks sir for correcting us...........
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
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- GST Rate for Catering Services
- Cash balance limit and property purchases limit
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
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
