Taxability of gift to huf
This query is : Resolved
12 October 2011
If HUF received gift from Karta's relative of Rs. 2Lacs. Then as it is more than 50,000/- it will be taxable gift.
And HUF has no other income.
Pls guide whether Limit of 160,000/- applicable for this gift of Rs. 2Lacs or not.
And HUF has no other income.
Pls guide whether Limit of 160,000/- applicable for this gift of Rs. 2Lacs or not.
12 October 2011
yes basic exemption will be allowed even ded under section 80C will be allowed
CA MANOJ GUPTA
JODHPUR
09828510543
CA MANOJ GUPTA
JODHPUR
09828510543
14 October 2011
Sir It means gift received from father will be count as other income for HUF
26 July 2025
Let's clarify the **taxability of gift received by HUF** from Karta's relative and related points:
---
### 1. **Is gift from Karta’s relative taxable in the hands of HUF?**
* As per **Section 56(2)(x)** of the Income Tax Act, any sum of money received without consideration exceeding ₹50,000 is taxable as income from other sources, **except when received from specified relatives**.
* **Who are relatives for HUF?**
Relatives for HUF include the Karta's relatives such as father, mother, spouse, brother, sister, etc.
* **Therefore:**
Gift received by HUF from Karta’s **relative (e.g., father)** is considered **exempt from tax** irrespective of the amount.
---
### 2. **What about the ₹2 Lakhs gift?**
* Since the gift is from Karta's relative (like father), **no tax is payable** on ₹2 Lacs gift received by the HUF.
* The ₹50,000 limit is applicable only when gift is from **non-relatives**. Here, exemption applies because donor is a relative.
---
### 3. **What about basic exemption limit of ₹1,60,000 and deduction under 80C?**
* The **basic exemption limit (₹1,60,000 for FY 2011-12)** and **deductions under 80C** apply to the **total taxable income** of the HUF.
* Since the gift from relative is **not taxable income**, it does **not form part of gross total income** of HUF, so these limits are not directly relevant here.
---
### 4. **Is gift from father counted as “other income” for HUF?**
* No, **gift received from father (relative)** is **not taxable** and does **not** get included in HUF’s taxable income under “income from other sources”.
---
### Summary:
| Gift From | Taxability in HUF’s hands |
| ---------------- | ------------------------------------------- |
| Karta’s relative | Exempt (no tax, no inclusion) |
| Non-relative | Taxable if > ₹50,000 under Section 56(2)(x) |
---
If you want, I can help with any further details or related scenarios!
---
### 1. **Is gift from Karta’s relative taxable in the hands of HUF?**
* As per **Section 56(2)(x)** of the Income Tax Act, any sum of money received without consideration exceeding ₹50,000 is taxable as income from other sources, **except when received from specified relatives**.
* **Who are relatives for HUF?**
Relatives for HUF include the Karta's relatives such as father, mother, spouse, brother, sister, etc.
* **Therefore:**
Gift received by HUF from Karta’s **relative (e.g., father)** is considered **exempt from tax** irrespective of the amount.
---
### 2. **What about the ₹2 Lakhs gift?**
* Since the gift is from Karta's relative (like father), **no tax is payable** on ₹2 Lacs gift received by the HUF.
* The ₹50,000 limit is applicable only when gift is from **non-relatives**. Here, exemption applies because donor is a relative.
---
### 3. **What about basic exemption limit of ₹1,60,000 and deduction under 80C?**
* The **basic exemption limit (₹1,60,000 for FY 2011-12)** and **deductions under 80C** apply to the **total taxable income** of the HUF.
* Since the gift from relative is **not taxable income**, it does **not form part of gross total income** of HUF, so these limits are not directly relevant here.
---
### 4. **Is gift from father counted as “other income” for HUF?**
* No, **gift received from father (relative)** is **not taxable** and does **not** get included in HUF’s taxable income under “income from other sources”.
---
### Summary:
| Gift From | Taxability in HUF’s hands |
| ---------------- | ------------------------------------------- |
| Karta’s relative | Exempt (no tax, no inclusion) |
| Non-relative | Taxable if > ₹50,000 under Section 56(2)(x) |
---
If you want, I can help with any further details or related scenarios!
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