Receiving the gift by HUF

HUF does not get any exemption for gift received...

right dhiraj.....

here m get confused....as per my notes provisions of sec 56 are applicable to individual and HUF as well...plz correct....

There is no Exemption of any amount which is received as Gift to "HUF"

;)

Originally posted by : vkbothra
	There is no Exemption of any amount which is received as Gift to "HUF" ;)

but..if u refer see sec 56 (2)(vii) it writes for both individual and HUF....whtz that then....??will it talk abt members of HUF...nw m severely confused..

Dear Prachi

you are right as per sec 56(2)(vi) and 56(2)(vii) it is written

""Where any sum of money, the aggregate value of which exceeds 50,000, is received
without consideration by individual/HUF, the whole of aggregate value is taxable as
income from other sources.""

It says, if the amount is less than50000/- than amount will be Exempted for both (IND/HUF) and if the amount of gift exceeds50000/- than whole amount will be taxable. there will be no exemption of50000/-.

eg.

In above case, if HUF Receives gift of50000/- than this will be exempted but here amount is more than50000/- thats why the whole amount will be taxable and will be considered as "Income From Other Sources"

and the word "Reletives" is defined for INDIVIDUAL only.

;)

thanks a lot....

U mean HUF can receive gift from anyone and on any occasion, it is not taxable if it does not exceed 50000....??? That relative and occasion wali condition is for individual only...???

Yeah ;)

k...thanks...:)