Imagine a karta or such other person gives a cash gift to the HUF. The HUF deposits it in a FD and earns interest. Will that be clubbed in the hands of the karta.
And will payment of tax on gift by the HUF relive the karta from payment of tax.
Please reply.
Dear Praveen,
Income arising from an irrevocable tansfer of assets are cahrgeable in the hands of "Transferor"
In case of "irrevocable transfer" or "gifts" - income arising is chargeable in the hands of "transfree"
But now with Sec 56 is in place even receipt of gifts will be taxable in the hands of HUF.
Jawahar and Associates Chartered Accountants
Hyderabad
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Interactive Media Pvt Ltd.
New Delhi
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