HUF Gift to Karta

1. In Income tax act, the definition of donor relative does not include an HUF. Hence, on plain reading of law, it appears that the gift received by individual HUF members (in excess of specified limits) from the HUF shall be chargeable to tax in the hands of members.

However, certain contradictory rulings have held that such gifts should be tax-free for individual members, as HUF is a group of relatives. Hence, adopting this position that gifts received by an individual HUF members from the HUF is tax-free may be litigious.

2. there should be no tax implications on the drawing of interest-free loans by you from the HUF, provided it can be established as a genuine transaction.

Answer to 1
if HUF gives gift it becomes partial partition. It is better to share that years income with Members. Consent can be taken to share uneven distribution from other members. also this sharing will be exempt u/s 10(2)

Answer to 2
HUF can take or give loan with or without interest.

Answer to 3
Better to disclose else non disclosure penalty may be levied.