Income Tax on Gift from HUF to member

[deepak gulati]

What is the status of gift from HUF to any of its member in light of judgment Vineetkumar Raghavjibhai Bhalodia vs. ITO (ITAT Rajkot), whether it is exempt or not.

AI Summary

Tax-Free Gifts from Hindu Undivided Family Under Section 56(2)(vi) Debated; Caution Advised for Transfers to Members A discussion on the tax implications of gifts from a Hindu Undivided Family (HUF) to its members references the case Vineetkumar Raghavjibhai Bhalodia vs. ITO. One contributor argues that such gifts are exempt from tax under section 56(2)(vi) of the Income Tax Act, as HUF is considered a group of relatives. Another contributor suggests the issue is debatable and advises caution, recommending that any fund transfers from HUF to members should be for specific purposes with consent from all members, ensuring the recipient remains a member or co-partner in the remaining properties.