Taxability of gift to huf

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CA. Naveen Jain (Querist)
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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.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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12 October 2011 yes basic exemption will be allowed even ded under section 80C will be allowed

CA MANOJ GUPTA
JODHPUR
09828510543

CA. Naveen Jain

CA. Naveen Jain (Querist)
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14 October 2011 Sir It means gift received from father will be count as other income for HUF

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Let's clarify the **taxability of gift received by HUF** from Karta's relative and related points:

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### 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.

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### 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”.

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### 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) |

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