I, my wife and unmarried daughter are three members of my HUF. My daughter will get married in near future. I don’t have much individual income. I want to gift good amount of gold ornaments, Cash and other gifts to my daughter and my son in law from corpus of my HUF. Can I as a karta of HUF give these without any tax burden on my daughter and son in law?
Yogendra Vansia, Valsad
Section 56(2)(vii) effective from 1st October 2010 has provisions under which an Individual person or an HUF receiving gifts of
exceeding Rs 50,000 , shall be taxable in Individual or HUF as the case may be. However, as per the proviso to Section 56(2)(vii) if gifts are received from following persons or circumstances , the gift money shall not be taxable (a) from any relative; or (b) on the occasion of the marriage of the individual; or (c) under a will or by way of inheritance; or (d) in contemplation of death of the payer or donor, as the case may be; or (e) from any local authority as defined in the Explanation to clause (20) of section 10; or (f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or (g) from any trust or institution registered under section 12AA. That is good news for you , because if your daughter receives any kind of gifts on the occasion of marriage , it is not taxable in her hand. It is my suggestion , that you gift whatever amount or gifts in kind you want to give to your daughter or son-in-law .But make an gift deed wherein clearly it should be written The Gift deed should be attested by Notary Public who is found at the court where you live.
About taxworry
Dear Sir,
It is pitiable that the schizophrenics in india are not exempt from their own bank interest earnings—–neither the parents get rebate in income tax levied on them.
As a matter of fact, this illness is the most dreaded one amongst all psyciatric illness. The whole family happiness is ruined due to one man,s illness in the house. Nobody laughs or shows any decent behaviour towards these poor guys. All relative shun away as if his or her schizophrenic status is contagiuos. No concern and no care from anybody.
In developed countries, they are treated in equal with any other citizen and are made to look after themselves and be independent. It is a pity on our social set up and as well on our Govt apathy in rehabilitation of such cases. The finance ministry, should look into this and help the parents who like me, are spending lakhs of rupees on treating trying to rehabilitate their son or daughter.
Hope my appeal goes to Mr. Pranab Mukerjee, the present honourable finance minister!
Thank you for the opportunity given to me to express my humble thoughts about the condition of such patients and the financial burden on their parents.
Dr Saleem and others, the aggrieved ones.