Gift to huf

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This query is : Resolved

CA Tanay Jindal (Querist)

19 May 2016 If any member of HUF made gift of Listed equity share to HUF then under which section this transaction is covered and whether or not this transaction is liable for tax.
and also if HUF sell this share in market then whether the amount will be clubbed in the hands of the member.

Amol S Joglekar

Amol S Joglekar (Expert)

20 May 2016 member may GIFT any amount to his/her HUF. The income shall be clubbed in the hands of donor.

CA Tanay Jindal

CA Tanay Jindal (Expert)

20 May 2016 Dear Amol, I want to know about the taxability of the gift of share and not the monetary amount.. the transfer of equity share is exempt in the hands of huf but what about the taxability of the member who is making gift

Amol S Joglekar

Amol S Joglekar (Expert)

20 May 2016 that is what i said. The gift NOT taxable in the hands of member. The income from the said gift is CLUBBED in the income of that member.

CA Tanay Jindal

CA Tanay Jindal (Expert)

20 May 2016 what about the applicability of the provision of capital gain when member gift equity share to huf

Amol S Joglekar

Amol S Joglekar (Expert)

23 May 2016 income includes every sort of income.......capital gain also.

CA Tanay Jindal

CA Tanay Jindal (Expert)

23 May 2016 dear Amol ji when member transfer share to huf is member liable to pay capital gain on it

Amol S Joglekar

Amol S Joglekar (Expert)

24 May 2016 As per your query, the member is GIFTING the shares and hence it is NOT capital gain. Transfer in relation to a capital asset as per Sec 2(47) of income tax act, although inclusive definition, does not include GIFT as transfer

CA Tanay Jindal

CA Tanay Jindal (Expert)

24 May 2016 thanks Amol ji...

Amol S Joglekar

Amol S Joglekar (Expert)

25 May 2016 you are most welcome.

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