Huf related questions
This query is : Resolved
12 September 2012
Hello, Assuming Amitabh and Abhishek and father and sons respectively. And they have their own HUFs where they're karta.
1) a) Amitabh makes a gift of Rs.15 lac through cheque to Amitabh HUF. Now will this gift be taxed in hands of HUF under Sec 56(2)?
b) Amitabh HUF invests these funds in Fixed Deposit and Earns Rs.140000 as interest during the year. In whose hands will this income be taxed? Will it be clubbed in Amitabh HUF's hands?
2) Amitabh also makes a gift to Abhishek HUF(whose karta is Abhishek and Amitah is not the memer of the HUF) to the extent of Rs.10 lacs. Will this gift be taxed in Abhishek HUF's hands?.
1) a) Amitabh makes a gift of Rs.15 lac through cheque to Amitabh HUF. Now will this gift be taxed in hands of HUF under Sec 56(2)?
b) Amitabh HUF invests these funds in Fixed Deposit and Earns Rs.140000 as interest during the year. In whose hands will this income be taxed? Will it be clubbed in Amitabh HUF's hands?
2) Amitabh also makes a gift to Abhishek HUF(whose karta is Abhishek and Amitah is not the memer of the HUF) to the extent of Rs.10 lacs. Will this gift be taxed in Abhishek HUF's hands?.
13 September 2012
Reply to query
1. No, this gift will not be taxed in the hands of HUF.
2. Interest earned on such deposits will be taxable only in the hands of HUF.
3. not taxable in the hands of HUF.
1. No, this gift will not be taxed in the hands of HUF.
2. Interest earned on such deposits will be taxable only in the hands of HUF.
3. not taxable in the hands of HUF.
CA VISHNU GAVKARE
(Expert)
13 September 2012
1. No
2. It will clubbed in the hands oh Amitabh. Sec. 64(2)
3. gift will be taxable in the hands of Abhishek(HUF) as amitabh is not relative. (For huf relative is its member.)
2. It will clubbed in the hands oh Amitabh. Sec. 64(2)
3. gift will be taxable in the hands of Abhishek(HUF) as amitabh is not relative. (For huf relative is its member.)
CA VISHNU GAVKARE
(Expert)
13 September 2012
1. No
2. It will clubbed in the hands oh Amitabh. Sec. 64(2)
3. gift will be taxable in the hands of Abhishek(HUF) as amitabh is not relative. (For huf relative is its member.)
2. It will clubbed in the hands oh Amitabh. Sec. 64(2)
3. gift will be taxable in the hands of Abhishek(HUF) as amitabh is not relative. (For huf relative is its member.)
13 September 2012
Thanks but I'm getting contradictory replies from both experts!!
1) Why will this gift not be taxed? Is there any section/provision in the Income Tax Act which exempts this?
2) One expert says it'll be clubbed u/s 64(2) whereas other says it'll not be clubbed. Please elaborate!
3) Again contradicting answers in this case. Please elaborate!
1) Why will this gift not be taxed? Is there any section/provision in the Income Tax Act which exempts this?
2) One expert says it'll be clubbed u/s 64(2) whereas other says it'll not be clubbed. Please elaborate!
3) Again contradicting answers in this case. Please elaborate!
Prakash Kochar
(Expert)
19 September 2012
Vide amendment to sect. 56(2)in clause (vii) in explanation "in case of HUF, any member thereof" is included in term of relative w.e.f. 1st Oct. 2009, retrospectively.
1(a) Amitabh a member of Amitabh HUF is relative as per amendment, therefore gift of Rs. 15 lac will not be taxable in hand of Amitabh HUF u/s.56(2).
1(b). Interest earned by HUF will be clubbed in hand of ind. Amitabh as per sect. 64(2).
2. Gift will be taxable in hand of Abhishek HUF as gift is not from relative, being Amitabh is not member of donee HUF.
Hope, this will satisfy.
09850350854.
1(a) Amitabh a member of Amitabh HUF is relative as per amendment, therefore gift of Rs. 15 lac will not be taxable in hand of Amitabh HUF u/s.56(2).
1(b). Interest earned by HUF will be clubbed in hand of ind. Amitabh as per sect. 64(2).
2. Gift will be taxable in hand of Abhishek HUF as gift is not from relative, being Amitabh is not member of donee HUF.
Hope, this will satisfy.
09850350854.
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