If Father's Huf has business income & gives gift out of business income to son's huf (in father's huf son is member) then in whose hand it is taxable?
If Father's Huf has no business income & in his books having loans & advances in the name of son's huf. Now it is to be converted into gift to son's huf then how the taxability is determined?
in my opinion, gift from business income of father's huf is taxable in the hands of son's huf if gift amount exceeds rs.50000 as per section 56 of income tax, since , Both HUF are separate and they can not be treated as relative.
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if one HUF give the gift to other HUF then it will be taxable in the hand of receiving HUF if it is more than Rs.50000 in a financial year. it will be taxable in the head of other sources u/s 56.
if the payments are received in this year then you can change this as gift received but if it is more than 50000 then it will be taxable in the receiving HUF. and as no exp will be allowed to the paying HUF.
It will be advisable to create the gift deed.
AGREE WITH ABOVE
TKS
RAMANUJ
CAclubindia
