Is Gift Taxable to HUF?

Tax queries 2349 views 4 replies

Is gift is taxable if it is paid to HUF?(Gift given Specifcally to Karta / HUF individual itself and not to the members of HUF)

Replies (4)

Gift given to individual / HUF in cash above Rs. 50,000 is taxable. However if gift is given by members of the HUF then it is not taxable. :)

Dear, the answer of ur querry r as follows.

1)  provision u/s 56(2)(vi) :- Moneatry gift (i.e. gift in cash & cheque only) recieved by IND/ HUF on or after 01/04/2004 shal be taxable under the head Income from other Sources ,if the aggregate value of such gift exceeds Rs 50000.

2) if member recieves gifts in his individual capacity & not in HUF      capacity then such gift shall be taxable in his hands becoz only gift recieved from HUF of which he is member shall be exmpt.

s the answer is right ,

T.S.Mohana Harish , harish_ts1984 @ yahoo.com

Under new provisions if an HUF is permitted to make gifts to its members. If so what will be tax treatment in the case of Donor - HUF  and in the case of receipient -Members.


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