Gifts by Father to Son's HUF---Section 56

Dear Mr Goyal,

You are right.

I acknowledge the error. "Relative" in the context ofSection 56(2)(vi) means the relative of an individual only. AlthoughSection 56(2)(vi) in its opening words mentions both HUF andIndividual as the assessees who will be subjected to tax on thegifted amounts, "relative" in the Explanation below is defined inrelation to the individual only. If relatives of Karta wereincluded, it would've been mentioned.But then the father can gift something other than a sum of money.Gifts in kind are outside the purview of Section 56. The father canmake gifts of units of mutual funds, gold, jewellery or even asingle-premium insurance policy to his son's HUF.Sub-clause (d) speaks of the sum of money given "in contemplation ofthe death of the payer". So if the father is a bit too long in thetooth and doesn't keep well, we can always say he's placed the moneyin his son's HUF kitty fearing he is not going to be around forlong. Section 191 of the Indian Succession Act, 1925 also providesfor this.Thanks,CA Sanjeev Bedi--- In

ICAI_CIRC_MEERUT_CA@yahoogroups.com, Dinesh Goyal wrote:>> In deed a very good article on the subject of HUF, but I havemy own doubts on the matter of gifts U/S 56 (2). Pl. see thedefinition of relative under that section , it refer all over theword ' individual' Say spouse of individual and so on...... in thelight of this whether the gift received from the relative of kartafor the benefit of huf will be exempt?.Please throw light on this.