Estate planning · HUF
Gifts to HUF: what is exempt and what is not
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Facts
Gifts received by a HUF are taxable under Sec 92(2)(m), Income-tax Act 2025 (old Sec 56(2)(x)) if they exceed ₹50,000 in aggregate in a year, unless the gift is from a relative of a HUF member. The definition of relative for HUF includes: any member of the HUF, and any relative of any member.
Provisions and law
- Income Tax Act, Sec 92(2)(m) (old 56(2)(x))
Analysis
Practically: your parents-in-law can gift cash to your HUF tax-free. This is one of the cleanest ways to seed a HUF with funds from outside the nuclear family.
Conclusion
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