Can HUF give gift to its members
Yes, a Hindu Undivided Family (HUF) can give gift to its members. As per the Hindu law, an HUF can make of its ancestral or self-acquired property to its members. The are typically given by the karta (head) of the HUF on behalf of the family.
However, it’s important to note that there are certain legal and tax considerations to be aware of when making within an HUF. The Income Tax Act, 1961, imposes restrictions and tax implications on such .
To visit https://www.mca.gov.in
Under the Income Tax Act, any income arising from the transferred property can still be taxable in the hands of the HUF. Additionally, if the total value of gifts made by the HUF to any individual member exceeds a certain threshold in a financial year, it may be subject to income tax implications such as tax on income from other sources or clubbing provisions.
It’s advisable to consult with a qualified tax professional or chartered accountant who can provide guidance based on your specific situation and help ensure compliance with relevant tax laws and regulations when making gifts within an HUF.
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