If a HUF gifts Rs. 10 lakhs to an individual through bank transfer, whether this will be taxable under income tax?
- Whether it will be taxable if gifted to any of members of HUF?
- Gifted to any third person?
Funds with HUF are already subjected to Income Tax. Any distribution of funds cannot be considered Gifts and re-taxed.
Same view was expressed in a court order. Therefor any amount paid by HUF to it's member is exempted from Income Tax.
Further, if HUF gives money to any third party as gift, then amount will be taxed as gifts in the hands of third party.
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