My father is Karta of his HUF. Myself, my mother and my father are member of his HUF. My question is whether my father can make gift from his HUF (in cash by bank transfer) to all of his HUF's members and to my HUF who is not member of my father's huf ? Is there any upper limit for gift amount ? Please give exact law para. Thanks for help.
As per law, family members are exempted for the gift. so there is no question of tax liability
That's true, but it is question of HUF. I found followings "Karta can make gift from the HUF property to the extent provided in Hindu law. A gift out of affection can be given to wife, daughter, or son. But it should be within reasonable limit."
Here what is reasonable limit ?
Actually in my case, my father wish to give entire liquid fund (about Rs. 1.5 crore from his total capital of 2 crore) of his huf to his HUF's members (self, wife, son & son's huf). will it attract "reasonable limit" ?
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