Opinion Of Eminent Legal Luminaries On Controversial Issues

Whether Gift Received By HUF From Its Member Liable To Tax?

QUERY: What is the treatment of gifts received by HUF from its members or their relatives?
ANSWER: U/s. 56(2)(vii) where an individual or HUF receives, in any previous year, from any person or persons on or after October 1, 2009, any sum of money without consideration the aggregate value which exceeds rupees fifty thousand, the whole of the amount would be considered as income. However, certain gifts received by Individuals or HUF have been excluded i.e., from the relative and relative means in case of HUF, any member thereof but it does not include relatives of such member.

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