A makes a gift of money, by bank transfer,to HUF of his son and daughter -in law, where son is Karta. A is not a member of this HUF. Will income from investment of the gifted money/ property be clubbed with A's income or not? or it will be taxed in hands of HUF? Is the gift made to HUF of son be regarded as gift to relative and exempt from tax? Or HUF will be required to pay tax on it?
Read more at: /experts/modify_message.asp?entry_id=881307
Menu
Gift to huf of son
Replies (1)
As per section 56, any sum of money received without consideration exceeding Rs. 50,000/- by an HUF will be taxable in the hands of HUF if it is received from non relatives. You are a non relative since relative covers only a member of HUF. As such if money transferred to HUF is more than Rs. 50,000/- than whole of such sum shall be deemed to be the income of the HUF. However no clubbing provisions will be applicable therefore if such money is invested by HUF and income is earned on it the same will be income of HUF only.
Recent Threads
- TDS on purchase of property more than 50 lakhs
- Withdrawal from post NSS
- Section 10(11) or 10(12) of exempted income
- New income tax act
- Duplication of Interest on SCSS deposits in postof
- Declaration of foreign investment
- Parent buying property for major child
- LIC maturity amount filing missed
- Advice on income tax
- E filing thr net banking for AY2025-26
Related Threads
CAclubindia
