Property gift to HUF

Quick Summary
Discussion on whether a Karta/HUF can gift property or shares to members or non-members and tax impact. Key points: gift deed is required, clubbing provisions may apply, gifts to members may be exempt u/s 10(2), but gifts to non-members can be taxable under section 56(2)(x), with capital gains implications on sale.

Sir.., Following this situation.., can you kindly give clarity on the following 3 points , please

1. Whether capital gains would be applicable for huf for gift given that huf to non-member since gifting is exempt from capital gains under 47(iii) from capital gains?

 

2. Whether gifts received by non-members from huf are taxable for the non-members since they are not "relatives" of the huf under section 56(2)(x)?

3. Whether gifts received by members from the huf are exempt for the members since they are "relatives" of the huf under section 56(2)(x)?

All Questions pertaining to the Specific situation that we are discussing only.

Thanks in advance. I am learning a lot from you. Appreciated 

Gift from HUF to any other than its members id taxable to the receiver. (u/s. 56(2)(x) IT act.

Gift from HUF to any of its member is tax exempt u/s. 10(2), provided it its the self earning of the HUF. Not otherwise.

Sec. 47(iii) is not applicable in both the cases.

Hello sir. In this current scenario , on the provisio that the HUF is going to Gift the Gifted shares to a Non Member , Ie my Mom, wont the Tax man argue question this and levy any GIFT tax either to my Mom or HUF? 

I understand Ofcourse Capital Gains  tax needs to be paid upon sale of the shares, which is a different situation, which ofcourse it will be paid.

Only doubt that we need want be 100% absolutly clear is that there wont be ANY GIFT TAX on the Gifted shares, as it is going to a Non member and the value is more than Rs 50000.

I think you have not properly understood the replies given earlier.

I have already stated earlier that tax liability will arise as she is not relative to HUF........

In other words your mom will be liable  to pay tax for  gift received from HUF.

Pardon My Mis understanding...Apologies..

So there is No meaning Gifting it to the Non member- My Mom. 

In that case can it be Gifted back to my wife, the member , without being  levied any Gift Tax, please.  You have stated in your previous response "Gift from HUF to any of its member is tax exempt u/s. 10(2), provided it its the self earning of the HUF. Not otherwise."   

What exactly do you mean by  " Gift from HUF to any of its member is tax exempt u/s. 10(2), provided it its the self earning of the HUF. Not otherwise."  please.

Sorry for being naive on this Jargons

In Nutshell. Self medication is injurious to health.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details