Gift to and by HUF

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This query is : Resolved

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This discussion clarifies the tax implications of gifts involving a Hindu Undivided Family (HUF). It establishes that gifts received by a HUF from relatives are generally exempt. However, gifts given by a karta to their HUF, or by a HUF to its karta or members, are not considered exempt as the HUF is treated as a separate legal entity for tax purposes.

Naveen Kumar Jain

Naveen Kumar Jain (Querist)
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22 April 2021 1. Will gift given by father to son's HUF in which all members come within definition of "relatives" be exempt in hands of HUF, as it amounts to gift to group of relatives?
2. Will gift by Karta to his HUF be exempt income in hands of HUF?
3.Will gift by HUF to Karta or its members be exempt in hands of recipient?

CA Raj Doshi

CA Raj Doshi (Expert)
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23 April 2021 1. Yes. 2. To the best of my knowledge, members cannot give gift to huf. only relatives can. 3. HUF cannot give gifts. it is prohibited.