Gift to huf

Shrirang (Querist) 06 September 2011 This query is : Resolved
I am the KARTA of my HUF; my wife and son are the members.
My father want to give gift to my HUF. Will it be considered as income of my HUF?
WIll it be Taxed?

-Shrirang

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A V Vishal (Expert) 06 September 2011
No, it will not be treated as income

Raj Kumar Makkad (Expert) 06 September 2011
No. Such gift is never taxable as this is not income of HUF.

prabhakar singh (Expert) 07 September 2011
Gift from strangers is taxable but not from family relatives.

R K JAIN (Expert) 08 September 2011
I differ from opinion given by Mr Prabhakar Singh and Mr Raj Kumar Makkad. In my opinion the gift to HUF more then Rs. 50000/- will be considered as income of HUF and taxable as per the proviosn of IT Act. As per the provision contained in section 56(2)(vi) since the exemption avilable under section 56(2)(v)is not available to HUF but to the relative given in the explaination in section 56(2)(v).

R.Ramachandran (Expert) 08 September 2011
Dear Mr. Ravinder Kumar Jain,
I am not sure, whether you are aware of a recent decision of the ITAT Rajkot on the matter. Please find attached the decision for ready reference.

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