HUF

Yes..it will be taxed u/s 56(2) as the amount exceeds Rs.50000..

It is not taxable if :

It is recieved from relative

It is recieved on occassion of marriage

It is recieved by way will/inheritance

It is recieved in contemplation of death of the payer...

 

I Agree with Shekar

If it is received by will of karta then whats the position?

Hi,

Per IT Act, Sec.56 clause(v) says that where any sum of money exceeding 25000.00 received without consideration by an individual or HUF from any person on or after the 1day of Sep,2004(but before 1.04.2006), the while of such sum :

 

or

 

Per IT Act, Sec.56 clause(vi) says that where any sum of money exceeding 50000.00 received without consideration by an individual or HUF from any person on or after 1.04.2006, the while of such sum :

Provided that this clause shall not apply to any sum of money received,

 a.from any relative or

b. on the occasion of marriage of the individual or

c. under a will or by way of inheritance or

d. in comtemplation of death of the payer or

e. from any local authority as defined in the explanation to (20) of section10 or

f. from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution u/s section clause 23C or

g. from any trust or istitution regi. under sec.12AA.

Explanation for relative means,

-spouse of the individual

-brother or sister of the individual

-brother or sister of spouse of the individual

-brother or sister ofeither  of the parents of the individual

-any lineal ascendent or descendant of the individual or spouse of the individual

-spouse of the person reffered to in clause of the above.

Incomes not included in total income. 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included— (1) agricultural income ; 73(2) 74[subject to the provisions of sub-section (2) of section 64,] any sum received by an individual as a member of a Hindu undivided family, where such sum has been paid out of the income of the family, or, in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family

sreekanth has given the most suitable answer

No reply is to the point, i think shekhar is telling that it will be taxable. but my question is that can't we treat this as a gift from a relative, as the gift is given by a HUF to one of the member which in turn can be treated as a relative???