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 ?
Query on LTCG Distribution from HUF Shares: Gift Tax Implications, Section 10(2) Applicability, Karta's Discretion Discussed. A query was raised regarding the distribution of long-term capital gains (LTCG) from shares held by a Hindu Undivided Family (HUF) for over five years. The questions included whether the proceeds could be distributed as gifts or profit shares among the Karta and coparceners, the tax implications concerning gift tax, the applicability of Section 10(2), and the discretion of the Karta in deciding the distribution ratio. The response advised consulting an income tax expert for clarification on these issues. (AI Summary)
TaxTMI 
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TaxTMI 
