Huf

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CASourav Agarwal (Querist)
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25 December 2014 sir , can a mother who would be a member of HUF gift a property to smaller huf in which her son would be karta? If yes then ,
will this gift attract provisions of gift tax in the hands of her mother or huf?
Plz solve its urgent..
Thanx in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 December 2014 Presently, there is no effective tax law like Gift Tax Act. Tax on gifts is levied under the provisions of the Income Tax Act only.
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If mother is not a member of the smaller HUF, total gifts received from non-members if exceeds Rs 50000/-, the gifts so received are taxed under the head Income from Other Sources.
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CASourav Agarwal

CASourav Agarwal (Querist)
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26 December 2014 Mother is a member in smaller huf & she wants to gift a house property for the benefit of smaller huf. is it possible & if yes , then what are the tax implication of this in hands of mother & huf

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 December 2014 Gifts received from Relatives are not taxable. A member of an HUF is defined as a Relative of HUF.
Section 56(2)(vii).
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Here, mother is a member of the HUF and she is converting her personal property into the common stock of HUF of which she is a member. Income arising from such property is taxable in the hands of mother.
Section 64(2).
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