HUF GIFT TO MEMBERS

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This discussion clarifies whether a Hindu Undivided Family (HUF) can gift assets to its members and Karta. It explains that such gifts are generally tax-free for the recipients, provided they meet certain conditions under Section 10(2) of the Income Tax Act. While there's no upper limit on the monetary value of gifts, a gift deed is typically only required for immovable property, not for cash or movable assets.

pawan bahl

pawan bahl (Querist)

09 June 2022 CAN HUF GIFT TO ITS MEMBERS AND KARTA. IS THERE ANY TAXABILITY.
HOW MUCH AMOUNT CAN B GIVEN AS GIFT TO MEMBER OR KARTA.

ALSO IS THERE ANY REQUIREMENT OF GIFT DEED TO B WRITTEN AND ON WT AMT OF STAMP PAPER.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 June 2022 Such gift not taxable. No limit.
Deed required only in case of immovable property as partition deed.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

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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