Gift

Page no : 2

Monika Bachhawat (Chartered Accountant) (211 Points)
Replied 15 March 2010

Since HUF is not individual but a group of people lnown as family the exemption which is received by individuals will not be available to HUF. Also refer the attach file

Monika Bachhawat (Chartered Accountant) (211 Points)
Replied 15 March 2010

Refer the attach file

Attached File : 6 taxability 20of 20gift 20 20article 5b1 5d.pdf downloaded: 82 times

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Monika Bachhawat (Chartered Accountant) (211 Points)
Replied 15 March 2010

Dhiraj from 1/10/09 it is Rs 50000/- & not Rs 25000/-

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

Thanx for correcting me monika

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

Hello Dhiraj,

I really appreciate your Interpretation,

Rajat

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

Its an honour to me sir... Thanx

(Guest)

Originally posted by : D н ! я σ ĵ

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.

You really make nice interpertation

but the whole amt is taxable not in excess of Rs. 50000

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 16 March 2010

Hi sweta, that 50000 was for KARTA.... because the gift is not recieved from a CLOSE RELATIVE.... so in excess of 50000, gift for KARTA, if at all there is, is taxable in hands.... Its not related to HUF at all... dont bother

Dinesh pratap singh (C.A. Final Student) (54 Points)
Replied 19 March 2010

Hi Sweta Relative in case of HUF is:

If Karta is X then:

(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

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Muthu (Assisstant Manager) (54 Points)
Replied 19 March 2010

Originally posted by : sweta jain
	What does relative mean from HUFpoint of veiw for the purpose of Sec: 56 ?

Sec. 56(2) (vi) and (vii) says the provisions are applicable if the receipt of gift is by an individual or HUF. For the purpose of basic exemption for a HUF the age of Karta becomes relevant. In such context for deductions and exemptions the term relation with reference to Karta should be considered.

Hence for the purpose of who are relative from HUF point of view, relationship to the Karta should be considered

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