Huf gifting shares to 1 member

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 January 2015 An HUF is holding shares in pvt amd pulblic ltd companies. These companies are not listed. If the HUF gifts these shares to 1 member with the consent of the others, will there be any tax liability on the member receiving the shares?

23 January 2015 No.
(Section 56 of Income Tax Act.)

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 January 2015 Kindly reply in detail as in my search it was coming that a member can gift to HUF without any taxability but when HUF gives a gift to member which in above 50000 and is not from the HUF'S current income tax will be liable. Kindly provide some case law or explain in detail

23 January 2015 Your contention is CORRECT.

But let us put it this way....When distribution of asset/income by HUF can be done without attracting section 56, why do you want to call it as GIFT?

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 January 2015 Pls explain....could not understand

24 January 2015 Why do you want to DESIGNATE it as GIFT.
HUF can as and when thought fit, distribute its assets


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