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Taxability on Gift to Daughter's Son

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AUDIT ASSISTANT
302 Points Posted on 29 January 2019
I have one query that whether Karta of HUF can gift Insurance policy from his HUF account to his daughter's son.i.e his grand son and if so whether any tax consequences arise in this case to both recipient and donor??
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On 29 January 2019 at 13:22 Report
Replies (8)
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Team Lead
7558 Points Posted on 29 January 2019
do you want to say that the policy matured proceeds are to be gifted to your grandson
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On 29 January 2019 at 13:47
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AUDIT ASSISTANT
302 Points Posted on 29 January 2019
no premium is payable from his huf account??
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On 29 January 2019 at 13:48
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Team Lead
7558 Points Posted on 29 January 2019
so in that case you can take the policy in his name and pay the premium till policy term goes on..the maturity proceeds of life insurance are fully exempt under 10(10D)
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On 29 January 2019 at 13:57
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AUDIT ASSISTANT
302 Points Posted on 29 January 2019
Ok he can pay premium from his HUF A/c
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On 29 January 2019 at 14:13
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Team Lead
7558 Points Posted on 29 January 2019
yes but huf can't get any tax benefit
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On 29 January 2019 at 14:21
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AUDIT ASSISTANT
302 Points Posted on 29 January 2019
ok so it will be wise to make payment from personal account for its allowance?
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On 29 January 2019 at 14:22
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Team Lead
7558 Points Posted on 29 January 2019
see if the policy is in your name then only you can claim tax benefit.
so either you can remove policy in grandson name but no tax benefit will be available since grandson is not covered for tax benefit. else you can show him as nominee.
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On 29 January 2019 at 14:26
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AUDIT ASSISTANT
302 Points Posted on 29 January 2019
ok thanks for your valuable suggestions
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On 29 January 2019 at 15:04


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