Income tax related

It is very well possible for the HUF to make gift to any member of the HUF to reasonable extent with the consent of the members/coparcener. Make a gift deed with the consent of all the members in the gift deed itself so that there is no problem in the future challenging of the gift from the members themselves. In this regard, the Punjab & Haryana High Court in Raghbir Singh’s case (1958) 34 ITR 719, held gift to the spouse of Karta to be valid primarily because the son, the only other coparcener had no objection to it. Also  Vineetkumar Raghavjibhai Bhalodia v. Income tax Officer, Rajkot (I.T.A. No.583/Rjt/2007 (Assessment year 2005-06).

Section 10(2) provides that tax shall not be payable by an assessee in respect of any sum which he receives from a member of Hindu Undivided Family and as the sum has been paid out of the family income, or in the case of an impartible estate, whose such sum has been paid out of the income of the estate belonging to the family, subject however, to the provisions of section 64(2).