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Gift Received by KARTA from HUF

Ashish Saboo (1 Points)

15 November 2019

Is gift received by KARTA from HUF is taxable?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193888 Points)
Replied 16 November 2019

Though gift received by HUF from its member/s is exempt u/s. 56(2)(x) of IT act, but reverse is not defined.

There are various case laws in favour of assesse in such case...

Refer:: 2019/pwc_6_august_2019_gift_received_by_an_individual

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rama krishnan (12244 Points)
Replied 16 November 2019

Here katta is individual and huf doesn't fall within the definition of relatives in respect of individuals.... in my opinion it's not exempt but as said by Mr Dhiraj, there are plethora of case laws in favor of assessee with the same facts

Ashay Shah (31 Points)
Replied 17 November 2019

According to my view
In the given case the same would be considered as exempt income in the hands of the karta herein referred as a MEMBER of the HUF & hence on the receipt of Gift Income would not be taxable in the hands of the Karta the member.
Hence in view of karta gift income of karta is NOT TAXABLE

Good Luck
Ashay P Shah

Akhil Suresh (81 Points)
Replied 27 November 2019

What you are referring to as gift is in essence a partial partition of property of HUF. Partial property is not recognized under income tax act. Hence for all practical purposes it is deemed to be the property of HUF. And any income arising therefrom is taxable in the hand of HUF only.