Gift to own huf and son's huf

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This query is : Resolved

yashsr (Querist)

10 September 2012 Hello,

Lets say there is a father Sharad Patel and his son Sachin Patel.

Hello,

1) Can Sharad Patel gift Rs.15 lac to 'Sachin Patel HUF'? Will it be taxed or will it be clubbed or is this allowed?

2) If Sharad Patel gifts Rs.10 lac to his own HUF i.e. 'Sharad Patel HUF' and the same is invested for interest @ 15%, will this income be taxed under the HUF or will it be clubbed under Sharad Patel's Income?

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)

10 September 2012 Gift (in lenial ascendent or descendent) is always paid from tax paid worth & hence do not attract Income Tax.

Reply to your first query is No
Reply to your second query is taxable in the hands of HUF & will not be clubbed in the member's personal income.

Prof. Bajaj

Prof. Bajaj (Expert)

13 October 2012 My views are little different here.

First query: Sharad Patel Can gift to Sachin Patel HUF. But amount over Rs. 50,000 will be taxed in hands of Sachin Patel HUF.

Second Query : If Sachin Patel Gifts Rs. 10 Lakhs to his HUF, and there is an income on this amount, it will be clubbed with Sachin Patel's personal income u/s 64(2).

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