Nagesh (private empolyment) 12 May 2022
Anila Sabu 28 June 2022
Dear Querist,
Giving any member or coparcener an asset from the HUF as a gift is acceptable if all the members and coparceners agree, however there will be income tax repercussions.
However, if the gift is made to a family member, the income tax department may treat this as partial partition of the HUF and disregard this for income tax purposes.
This means that even if the item may have been physically transferred to the member for his profit and enjoyment, the revenue resulting from the gifted asset will still be subject to tax in the hands of the HUF.
As the karat is a member of the family the above-mentioned repercussions will apply.