Huf

POSTED BY Raj. F ON March 8, 2012 5:43 pm COMMENTS (2)

Thanks mr. ASHAL for the reply. Kindly clarify one more thing from your reply. As mentioned gift received by huf is treated as income of huf, suppose Rs. 5 lacs is received as gift, is Rs. 5 L. taxable in the applicable slab only one time in the FY it was received? If in subsequent years if income is below Rs. 1.80 lacs by way of bank interest i assume no tax is payable. Kindly clarify.

2 replies on this article “Huf”

  1. Dear Raj, no need to post your reply in a new thread every time. Just click the reply button in the old link & keep questioning. this ‘ll also be easy for you to track in future for a reference.

    Thanks

    Ashal

  2. Dear raj, yes your understanding is correct, the gift in the year of receipt ‘ll be treated as income of HUF & taxed accordingly. later on the income generated from such gifted amount ‘ll be taxed as per normal slab. In case the earning from such gifted amount say 5L Rs. invested in bank FDs & this is the only source of income to HUF in a FY & no other income or gift is received by HUF, the interest thus earned from these 5L Rs. ‘ll be tax free as it’s below the zero tax limit.

    So no need to file any Income Tax Return also for this zero tax slab.

    Thanks

    Ashal

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