Taxability of gift

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This query is : Resolved

Hema Baldi (Querist)

20 August 2011 Is Gift given by an HUF to its members taxable in the hands of the members ? Or is it exempt as received by relative?

CA Rajeev Bansal

CA Rajeev Bansal (Expert)

20 August 2011 Gift given by an HUF to its members is taxable in the hands of the members in excess of Rs. 50000.00 as HUF is not come under the defination of relative.

As per Section 56(2), if an individual or HUF receives a sum of money or property without consideration, then it is chargeable to tax in the hands of receipents under the head "Income from Other Sources"

Hema Baldi

Hema Baldi (Querist)

20 August 2011 Can i consider this amount of gift under Section 10(2) to be exempt?

Hema Baldi

Hema Baldi (Querist)

20 August 2011 Can the member Receiving such gift from HUF claim exemption under Section 10(2)?

CA Rajeev Bansal

CA Rajeev Bansal (Expert)

22 August 2011 Read section 10(2) carefully, it saya any sum receuved by an individual as a member of HUF, where such sum has been paid out of the INCOME of the Family, or in case of impartiable estate where such sum has been paid out of the INCOME of the Estate to the family

Hence gift cannot be considered in this section

Hema Baldi

Hema Baldi (Querist)

22 August 2011 Thank you very much CA Rajeev.

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