Gift recieved by member from huf

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Nikhil Mehta (Querist)
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01 May 2012 Dear all,
Now after amendment in Finanace Act,2012. The defination of Relative have been amended for HUF, wherein any gift recieved by HUF from its member will be exempt in the hand of HUF.
My query is what will be the tax treatment of Money recieved by Individual member of HUF from HUF.
Please relply, in urgent need

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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01 May 2012 Share received from HUF is anyways exempt from Tax under Section 10(2) of the Income Tax Act. So no taxability in the hands of the recipient.

Nikhil Mehta

Nikhil Mehta (Querist)
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01 May 2012 No sir this is not share, but a gift from HUF to Karta

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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01 May 2012 Share received from HUF is anyways exempt from Tax under Section 10(2) of the Income Tax Act. So no taxability in the hands of the recipient.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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01 May 2012 Even if it is a gift, it can be treated as share. Any payment from HUF to Karta or any other co-parcener is exempt from tax under Section 10(2). Even if it is a gift, you can show it as the share.

Nikhil Mehta

Nikhil Mehta (Querist)
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01 May 2012 Sir, will that also include any payment, even in the form of a Gift, which is specifically paid to Karta and not to any other member.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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01 May 2012 Yes. It is as good as making drawings from a partnership firm. That share is of all members of the HUF. But it is not necessary for everybody to withdraw their respective share.

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Nikhil Mehta

Nikhil Mehta (Querist)
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01 May 2012 Thanks a lot Kabra Ji

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