HUF Gift from Karta

Hello Sir 

Need an expert opinion please 

I am a NRI. 

My question is about Gifting the shares from our DEMAT acct to HUF acct.

I understand that the gift from Karta & Co parceners are tax exempt and there is no limit to that (correct me if I am incorrect please)

I want to know, whether the Capital gains Profit that the HUF will make following the gift via off market transfer of shares without consideration, from the kartas DEMAT shares to HUF DEMAT will be clubbed to the Karta or Not please.

Your response would be greatly appreciated ๐Ÿ™ ๐Ÿ™ ๐Ÿ™ 

Regards 

Dr Seetharaman 

 

 

Replies (3)
Quick Summary
This discussion addresses gifting shares from an individual's DEMAT account to a Hindu Undivided Family (HUF) account, specifically for NRIs. It clarifies that gifts from a Karta and co-parceners to an HUF are generally tax-exempt with no limits. The core question revolves around whether capital gains from shares gifted to the HUF via off-market transfer will be clubbed with the Karta's income.

Gifting shares from a DEMAT account to a HUF (Hindu Undivided Family) account is a thoughtful gesture. Here's a step-by-step guide to help you through the process: 1. _Ensure HUF account exists_: Make sure the HUF account is already created and active. 2. _Get HUF PAN_: Obtain the PAN (Permanent Account Number) for the HUF. 3. _Update HUF details_: Ensure the HUF details, including the PAN, are updated in your DEMAT account. 4. _Select shares to gift_: Choose the shares you want to gift from your DEMAT account. 5. _Fill out the gift deed_: Fill out the gift deed form provided by your DP (Depository Participant) or broker. 6. _Submit the form_: Submit the completed form to your DP or broker. 7. _Execute the transfer_: The DP or broker will execute the transfer of shares to the HUF account. 8. _Verify the transfer_: Confirm the transfer is complete and the shares are credited to the HUF account. Some important notes to keep in mind: - _Tax implications_: Gifting shares may have tax implications for both the donor and the HUF. Consult a tax professional to understand the tax consequences. - _Stamp duty_: Some states may charge stamp duty on the gift deed. Check the applicable laws in your state. - _DP or broker fees_: Your DP or broker may charge fees for the transfer process.

Gifting shares from a DEMAT account to a HUF (Hindu Undivided Family) account is a thoughtful gesture. Here's a step-by-step guide to help you through the process: 1. _Ensure HUF account exists_: Make sure the HUF account is already created and active. 2. _Get HUF PAN_: Obtain the PAN (Permanent Account Number) for the HUF. 3. _Update HUF details_: Ensure the HUF details, including the PAN, are updated in your DEMAT account. 4. _Select shares to gift_: Choose the shares you want to gift from your DEMAT account. 5. _Fill out the gift deed_: Fill out the gift deed form provided by your DP (Depository Participant) or broker. 6. _Submit the form_: Submit the completed form to your DP or broker. 7. _Execute the transfer_: The DP or broker will execute the transfer of shares to the HUF account. 8. _Verify the transfer_: Confirm the transfer is complete and the shares are credited to the HUF account. Some important notes to keep in mind: - _Tax implications_: Gifting shares may have tax implications for both the donor and the HUF. Consult a tax professional to understand the tax consequences. - _Stamp duty_: Some states may charge stamp duty on the gift deed. Check the applicable laws in your state. - _DP or broker fees_: Your DP or broker may charge fees for the transfer process.

Gifting shares from a DEMAT account to a HUF (Hindu Undivided Family) account is a thoughtful gesture. Here's a step-by-step guide to help you through the process: 1. _Ensure HUF account exists_: Make sure the HUF account is already created and active. 2. _Get HUF PAN_: Obtain the PAN (Permanent Account Number) for the HUF. 3. _Update HUF details_: Ensure the HUF details, including the PAN, are updated in your DEMAT account. 4. _Select shares to gift_: Choose the shares you want to gift from your DEMAT account. 5. _Fill out the gift deed_: Fill out the gift deed form provided by your DP (Depository Participant) or broker. 6. _Submit the form_: Submit the completed form to your DP or broker. 7. _Execute the transfer_: The DP or broker will execute the transfer of shares to the HUF account. 8. _Verify the transfer_: Confirm the transfer is complete and the shares are credited to the HUF account. Some important notes to keep in mind: - _Tax implications_: Gifting shares may have tax implications for both the donor and the HUF. Consult a tax professional to understand the tax consequences. - _Stamp duty_: Some states may charge stamp duty on the gift deed. Check the applicable laws in your state. - _DP or broker fees_: Your DP or broker may charge fees for the transfer process.

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