If an individual gives a gift amount of let's say 10 lakhs to an HUF of which he is the Karta, is it taxable in the hands of the HUF?
From various posts that I have read, the answer seems to be YES, but, I want to be 100% sure as there was some confusion regarding definition of relative. Anyways, my question is simply regarding gift cheque from an individual to an HUF of which he is the Karta. If interprettion of this is not very clear and debatable, please do let me know.
Thanks.
It will be not be taxable in the hands of HUF, as any amount received from relative is exempted and Union Budget 2012 has also retrsospectively amended the definition of relative to include "any member of HUF as a relative of HUF".
Ofcourse, previously there were some confusion and doubts regarding this matter, but now it is very much clear after Union Budget 2012.
Thanks a lot for the prompt replies!
CAclubindia
