Search Results For: Income from other sources- Gift by a member to HUF

QUERY: Gift to HUF by members:
a) What will be the tax implications of a gift by cheque (sum of money), given by a member to the HUF?
b) Whether the member will be considered as a relative as defined in explanation to clause (vii) of section 56(2) and consequently the gift not considered as income from other sources for the HUF as per section 56(2)(x)(a)?
ANSWER: Click here to read the full answer of the expert

A gift by a member to HUF is not taxable as per section 56(2)(vii) read with Explanation to section 56(2)(x).