Huf gift to it's members
This query is : Resolved
29 October 2021
Can huf gift to it's members? What will be the tax liability and impact will be whom?
29 October 2021
Well upto Rs. 50K PA is exempt.
More than that is liable for tax in the hands of member; but it is accepted to be exempt by higher authorities in many cases.
More than that is liable for tax in the hands of member; but it is accepted to be exempt by higher authorities in many cases.
29 October 2021
In what cases gift by huf to its members is accepted as exempted?
29 October 2021
For other than marriage occasion, some courts or tribunal have treated it as exempt..
read:
1. https://www.dnaindia.com/personal-finance/column-gift-received-from-huf-is-not-taxable-2790276
2. Veenitkumar Raghavjibhai Bhalodia Vs. I.T.O.5(4) Rajkot ITA No 583 and 601/Rjt/2008 Asst.Yr. 2005-06 Ahd. Tribunal. Dated 17/05/2011
read:
1. https://www.dnaindia.com/personal-finance/column-gift-received-from-huf-is-not-taxable-2790276
2. Veenitkumar Raghavjibhai Bhalodia Vs. I.T.O.5(4) Rajkot ITA No 583 and 601/Rjt/2008 Asst.Yr. 2005-06 Ahd. Tribunal. Dated 17/05/2011
29 October 2021
Yes, no tax liability on any body.
29 October 2021
Can we gift any amount from huf to it's members?
29 October 2021
Yes, no limit, cash gift limited less than 2 lacs.
Chandigarh bench of the Income-tax Appellate Tribunal (Tribunal) held that the
provision of section 56 (2)(vii) of the Income-tax Act, 1961 (the Act) does not apply to a gift given by a Hindu Undivided Family (HUF) to its members, on the premise that a member has pre-existing right
in the family properties. Thus, when a member receives any sum from the HUF, during the subsistence of the HUF or on its partition, it cannot be treated as receipt without consideration. The Tribunal also held that even otherwise, the taxpayer was entitled to exemption under section 10(2) of the Act.
Chandigarh bench of the Income-tax Appellate Tribunal (Tribunal) held that the
provision of section 56 (2)(vii) of the Income-tax Act, 1961 (the Act) does not apply to a gift given by a Hindu Undivided Family (HUF) to its members, on the premise that a member has pre-existing right
in the family properties. Thus, when a member receives any sum from the HUF, during the subsistence of the HUF or on its partition, it cannot be treated as receipt without consideration. The Tribunal also held that even otherwise, the taxpayer was entitled to exemption under section 10(2) of the Act.
30 October 2021
As such the the amendment in sec. 56(2) of act is pending from long time. That is the reason assessee has to fill the heat of assessing officer most of the times, and take the shelter of appeals.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR-3 ignores Section 211 (1) (b) for Professionals u/s 44ADA
- ITC Re-claimable Ledger
- Upload Level Validation Error
- ERROR IN ITR3
- F & O Loss Audit Requirement
- Rectification of error U/s 154
- ALIMONY AND MAINTENANCE CHARGES
- BUSINESS +STOCKS
- Upload Verification Error ITR 3 AY205-26
- Error while filing ITR3 AY2025-26
- Clarification Regarding Tax Deduction at Source on Receipt Against Issuance of Privilege Voucher
- GST TDS on metal scrap
- ITC Inter head difference
- 80CCD(2) of IT ACT
- Guidance for proper GST accounting (eway bill with correct valuation) for cut-to-pack job work given
- GST Treatment multiple delivery services
- Sale of foreign shares in Indian Rupees - FEMA rules
- Calculate Tax Liability of Sharmila
- Document to add trade name
- GST Partners addition
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
