can huf give gift (financial) to its members ?
will it attract gift tax,will the income generated be taxed in the hands of huf ?( clubbing)
is it right that only the 1st time income generated by above tranfer will be clubbed and not the subsequent ones ?
Asked in Taxation from Dombivli, Maharashtra
Yes an HuF can give gift fo its members. It will not attract gift tax. The income generated will not be taxed in the hands of the receiver since HUF is a person.