it is really cannot be understood which gift to a HUF is exempt from tax; i am not mentioning about the basic exemption of 50K or the threshold limit for taxation. the relatives defined are all for the individual and not for HUF.
RE:incomes are tax-free
by Amitabh on Apr 28, 2007 01:20 PM Permalink
Gifts to HUF,even if received from a relative are not exempt from tax.Any sum received by an individual or HUF,if it exceeds Rs 50,000,as per the provisions made in this year's budget,is entirely taxable.Exceptions pertaining to gifts received from relatives are there,but they exist for individuals only.So if an HUF receives any sum of money exceeding rs 50,000 entire sum will be taxed,even if the same is received froma relative of HUF.
RE:incomes are tax-free
by Amitabh on Apr 29, 2007 01:08 PM Permalink
However,I would like to addone more thing here.Any sum received as a gift by individual or HUF under a will or as inheritance,even from a non relative,is exempt from tax without any limit.This is applicable for gifts received by individuals as well as HUF.
