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Gift from Relative of Karta to HUF

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Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2011 Does Gift Received from Grandmother or any other Relative as per definition of Sec. 56 of Karta of HUF is taxable to HUF. If not Please suugest me why. IF there is any case laws favouring it, Please suggest the name of that.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2011 There cannot be any relative of HUF. Now, as regards Karta he is individual and the list of relative as given in Section 56 gift from all relatives who has got blood relation are exempted.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 July 2011 In my view, relations given U/s 56 are in respect to an Individual and not in relation with HUF. There is no relative of HUF as such.
From the wordings of the section, Grandmother or any person can gift to HUF only in contemplation of her/his death.
Otherwise the gift exceeding 50000/ can be treated as taxable.

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