Dear all,
there is a confusion prevailng in our society that "A HUF can received gift from its member but A member can't taken gift frm its HUF.
Let me know am i right ?
Plesae substaniate your answer with section.
I dont know on which context the question is placed before this forum. So far it relates to incometax, as per the decision reported in 46 sot 97 even if it is received by a coparcener of the HUF, the same is not taxable in his hands.
Relatives covered under the definition for tax free gifts
One of the main problems faced by individuals when they look to receive or give gifts is not being knowledgeable about when the gift would be taxable. The reason for this is that there is a term called relative which is present in the income tax act and gifts received from a relative would not be taxed in the hands of the receiver. This is the reason that the individual has to ensure that they check whether the relative who is giving the gift is covered by the definition otherwise the receipt could end up being taxed.
Overall nature of transaction
When it comes to question of gifts then the receiver of the gift will be taxed on the figure that is not exempt by including this in the income under the head of income from other sources. There are some receipts which are excluded from being included as the income and this will include the amount received as inheritance or the amount received at the time of a wedding or the amount received from relatives. In all other cases if the amount received is more than Rs 50,000 in a year then this figure would be included as income. Now the key part if the definition of the relative so that the individual knows the person from whom the receipt is not taxable.
//http://www.lawweb.in/2013/06/relatives-covered-under-definition-for.html#more