Income earnd from gift given by individual to huf

huf income earned by investment so it is a income of huf and huf is eligible to pay the tax on such amount which is earned by investment activity.

• The clubbing provisions u/s 64(2) of the IT Act shall apply. The income arising from such converted property will be included in the total income of the individual who was the owner of such property.

• Where the converted property has been subject matter of partition amongst the member of the family, the income derived from such converted property as is received by the spouse, shall continue to be taxed in the hands of  the transferor individual.

• Income in respect of the property allotted to minor children till minority shall be clubbed in the hands of the father on account of overriding provisions contained u/s 64(1A) of the IT Act. However, transferor can claim exemption upto Rs.1,500/- u/s 10(32).

• What is to be clubbed is the income arising from the assets transferred. However, income derived on the accretion of such property or from the accumulated income from such property cannot be clubbed.