Huf firm gift to it's members

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This query is : Resolved

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This discussion explores whether a HUF (Hindu Undivided Family) firm can gift ₹10 lakh to its member and if this gift would be taxable. While HUF members are considered relatives to the HUF for tax purposes, the reverse isn't always clear, meaning a gift from an HUF to a member might not automatically be treated as a gift from a relative. The query also seeks to understand the tax liability if the gift isn't considered tax-exempt, and who would be responsible for paying the tax – the HUF or the member.

ARUN GUPTA

ARUN GUPTA (Querist)

31 March 2022 My father is karta of a huf firm. Can this huf firm give me gift of 10 lakh rupees. Will this gift be taxable? Please explain.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

31 March 2022 As far as HUF is concerned, its members are its relative under Income Tax but not the other way round. meaning thereby that gift from HUF to its member may not be treated as gift from relative since there is no clarity that for individuals, their HUF is relative. One may need to take help of judicial pronouncements in this regard.

ARUN GUPTA

ARUN GUPTA (Querist)

31 March 2022 If huf gifts it's member then what tax liabllity will come if not treated as gift.

ARUN GUPTA

ARUN GUPTA (Querist)

31 March 2022 Who will be taxed huf Or member?

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