Hi
Pls let me the provisions applicable for FY 20-21 for the following:-
1. If a Karta gives a gift in cash through bank transfer to his HUF, it is liable to tax?
2. Can a Karta give interest free loan to HUF?
3. Is the income so accrued to the HUF after investing the amount received as gift/loan to HUF clubbed in the hands of the karta?
Relevant sections/ case laws from would help.
Best Regards
Rajiv
As per Section 56 (vii), "where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009 but before the 1st day of April, 2017,......."
Again as per Section 56(x), "where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017,—............"
Therefore, the act has specifically removed the words HUF. In this light can gift from karta to HUF in excess of 50,000 still be tax free?
Please let me know under which section the clubbing provision will be attracted. Relevant extract of the Income Tax Act will be very helpful.
Sec 60 states "Transfer of income where there is no transfer of assets "
In case of gift by karta to HUF it is transfer of assets and not transfer of income. So, clearly as per section 60, clubbing is not applicable.
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