There are separate tax rules on the gift. If the value of the gift is within a certain limit, then it does not come under the scope of tax. When the value is more than the fixed limit, it is taxed. However, there are some relationships that do not tax the gift found. Manoj Saha started HUF last year. Its doer was his father. Karta i.e. father gave 5 lakh gifts to HUF. Will it be taxed? Moneycontrol tried to know the answer from tax expert Balwant Jain.
Jain said that Income Tax Act Section 56 (2) (x) mentions tax rules on gifts. According to this, if a person has received a gift of up to Rs 50,000 or several gifts in a financial year, then he will not be taxed. But, if the value of gifts is more than Rs 50,000, then he will be considered the income of the person he has received. On this, that person will have to pay tax. The tax rate will be according to its tax slab.
He said that the gift from some relatives does not come under the scope of tax, no matter how much his value is. As far as Hindu undivided family (HUF) is concerned, all its members are considered relatives. Therefore, a gift from HUF member will not come under tax for HUF. However, the provision of clubbing will apply to this. This means that the person who has given the gift on the income from the gift.
Linnial disorders of a common easester are members of HUF. HUF will have a doer, will be spijies and children born to him. Father and father -in -law cannot be associated with HUF as a member. The reason for this is that they do not fall into the line of disorders.
Since, Manoj Saha’s father and his father -in -law are not members of HUF, from which the gift from him will come under the scope of tax. He will be taxed that year the year he has received. If it is not shown in income tax return, then penalty may be imposed, which will be 200 percent of the outstanding tax. Apart from this, regular tax and interest will also be levied. Jain said that it is beneficial for HUF to file ITR Income Tax in the new regimen. Tax is less in this.