Share of Profit HUF

[RK B]

Greetings

Can a HUF who is having shares as investments for more than 5 years, book LTCG on a part(50%) of it and distribute the proceeds (PROFIT) as gift OR share of porfit among the Karta & Coparcerners..

If yes,

1.What will the tax implication of the same. (wrt gift tax)

2. Will Sec 10(2) be applicible or not ?

3. What ratio should the distribution take place or it can be left to the Karta's discretion ?

[DR.MARIAPPAN GOVINDARAJAN]

You may better approach to an expert in income tax for clearing your all doubts.

AI Summary

HUF distribution of capital gains: tax treatment and gift implications questioned; expert advice recommended. Whether an HUF may realise part of long held shares, treat the proceeds as long term capital gains and distribute those proceeds to the Karta and coparceners as gifts or share of profit-with attendant questions on gift tax treatment, applicability of the cited exemption provision, and the required distribution ratio-is posed; the sole reply advises consulting an income tax expert and offers no definitive legal guidance.