09 June 2022
Gifts permitted by HUF to its members satisfying to the conditions of Section 10(2) are exempt from Income Tax in the hands of recipients. It shall be taxable only if the value of the gift is above the threshold limit provided in the Section 56(2)(vii).
If any property is gifted by any member to HUF it will be tax free, but any income from such property will be deemed to be considered as income of the member as per clubbing provisions of Income tax (Section 64).
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