Trust distinct legal entity: transfers from an HUF to a trust may attract gift tax if consideration is inadequate. A trust constituted for the benefit of members of a Hindu Undivided Family is a distinct legal entity separate from the HUF, and a transfer of property by the Karta to such a trust is a bilateral transaction between two separate legal persons; if such transfers are for no consideration or for less than adequate consideration, gift tax provisions will be attracted.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Trust distinct legal entity: transfers from an HUF to a trust may attract gift tax if consideration is inadequate.
A trust constituted for the benefit of members of a Hindu Undivided Family is a distinct legal entity separate from the HUF, and a transfer of property by the Karta to such a trust is a bilateral transaction between two separate legal persons; if such transfers are for no consideration or for less than adequate consideration, gift tax provisions will be attracted.
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