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What does relative mean from HUFpoint of veiw for the purpose of Sec: 56 ?

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SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 14 March 2010

same as individual.

pls thanka 2 me

(Guest)

Who is the mother, father , sister , brother of HUF ?

your ans. is not clear

whetther the relation is to be seen from Karta point of veiw?

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 15 March 2010

Dear Sweta,

(2) of section 56, of tax payer X means -

(i) Spouse of the individual ----- Mrs. X

(ii) Brother or sister of the individual ---- Brothers / sisters of Mr. X

(iii) Brother or sister of the spouse of the individual - Brothers / sisters of Mrs. X

(iv) Brother or sister of either of the parents of the individual

-- Brothers / sisters of father / mother of Mr. X.(v) Any lineal ascendant or descendent of the individual

---- Lineal ascendant or descendent of Mr. X

(vi) Any lineal ascendant or descendent of the spouse of the individual

---- Lineal ascendant or descendent of Mrs. X

(vii) Spouse of the person referred to in clauses (ii) to (vi)

---- Spouse of the aforesaid persons

In my opinion, any sum of money received from any relative as above is exempt only for individuals. Since HUF is not an individual and it is not a natural person, the exemption will not be available to it, it is only availaible to an Individual.

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(Guest)

I do agree with you

Thankyou very much!!!!!!

CA PRAVEEN KESHAV (CHARTERED ACCOUNTANT) (331 Points)
Replied 15 March 2010

1.Spouse 2.Brother or sister 3.Brother or sister of the spouse 4.Lineal ascendant or descendent of the individual includes relatives.

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CA PRAVEEN KESHAV (CHARTERED ACCOUNTANT) (331 Points)
Replied 15 March 2010

“relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual;

CA PRAVEEN KESHAV (CHARTERED ACCOUNTANT) (331 Points)
Replied 15 March 2010

(i) spouse of the individual; (ii) brother or sister of the individual; (iii) brother or sister of the spouse of the individual; (iv) any lineal ascendant or descendant of the individual; (v) any lineal ascendant or descendant of the spouse of the individual; (vi) spouse of a person referred to in sub-clause (ii), sub-clause (iii), sub-clause (iv) or sub-clause (v); (vii) any lineal descendant of a brother or sister of either the individual or of the spouse of the individual.

saranraj (CA FINAL) (419 Points)
Replied 15 March 2010

THE TERM RELATIVE IS NOT APPLICABLE FOR HUF'S

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Mayank Shyamsukha (CA FINAL) (119 Points)
Replied 15 March 2010

Agree with CA RAJAT SINGHAL. RELATIVES ARE DEFINED FOR INDIVIDUAL ONLY.

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CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 15 March 2010

Under the Income Tax Act, a HUF is treated as a separate entity for the purpose of asessment. The term "HUF" has not been defined under the I-T Act. The expression is, however, defined under the HINDU Law where a person who acquire interest in joint family by birth is called a COPARCENAR. A Coparcenar cannot be termed as a Relative of the Karta of the HUF.

Hence the definition of Relatives for an INDIVIDUAL cannot be used for the HUF. So, if the Karta receives a gift from a relative, who is not a Coparcenar of the HUF, the gift so received will be termed as "Gift from relatives". Any gift received from such realtive upto Rs. 50,000 will be exempted from tax. A gift recived in Excess of Rs. 50,000 will be taxable since the relative from whom the gift is received is not a close relative of the karta.

This is solely my interpretation of the query. Others opinions on the same are solicited. Thanks.

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