In my HUF, my Wife & Son are coparceners. Can my wife gift shares to HUF. If yes What will be the tax implications. And if the gifted shares are sold by HUF, will the capital gains on it be clubbed in wife’s income.
17 September 2023
Gifts received by HUF from its members are exempted from Income Tax under Section 56(2)(vii) of the act. As per Hindu law, HUF is inclusive of all family members from a common ancestor, hence the limit of 50,000/- does not apply on HUF, excluding cash gift of more than Rs 50,000/-. No clubbing.
31 October 2023
A gift of shares to family member as well as the HUF will be tax exempt as it would be classified as 'property received from a relative' which is specifically exempt on account of section 56 (2)(x) of the Income Tax Act, 1961.
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