06 October 2009
AS PER SECTION 56(1) OF INCOME TAX ACT, GIFT RECEIVED IN CASH/ CHEQUE FOR MORETHAN RS 50000.00 IN A FINANCIAL YEAR IS TAXABLE IN HAND OF RECEPIENTS AS OTHER SOURCE INCOME.BUT RELATIVE ARE EXEMPTED FROM THIS TAX NET.
AS PER INCOMETAX ACT, ALL THE PAYMENTS MADE BY THE HUF TO THERE MEMBERS IS DISALLOWED TO HUF,EXCEPT THE RESONABLE PAYMENYS MADE BY THE HUF TO ANY MEMBER FOR PROVIDING THE PROFESSIONAL SERVICES WITHOUT WHICH BUSINESS OF THE HUF CANNOT BE DONE,IS ALLOWED. HENCE AS ALL PAYMENTS MADE BY THE HUF TO MEMBERS IS DISALLOWED IN HAND OF HUF ,,,IT WILL BE EXEMPTED IN HAND OF MEMBERS
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