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T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Oct 15, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by PRAVEEN on Oct 15, 2024Hindi

Sir, i got huf pan. But heard that corpus building is tedious task as any gift amount above 50,000 is taxable. For huf basic exemption limit is 3 lacs in new tax regime. So, can i take 3 lacs gift from my father and show under huf exemption limit in itr as income? Thanks in advance. Any reply is highly appreciated.

Ans: 01. Your father can gift you Rs.3,00,000.00 without any tax implications.
02. You may in turn, gift the same amount to HUF, again without any tax implications. It has no connection with the Income or Basic Tax Exemption Limit of HUF.
MOst welcome for any further clarifications. Thanks.

Asked on - Oct 25, 2024 | Answered on Nov 04, 2024

Thanks for your reply sir. Understood that karta can donate any amount to huf but any income generated by that amount will be taxable in hands of karta. Then no use of gifting amount. Thats why my plan is to take gift from other persons upto max 3 lacs per annum and show it as income in itr. As basic exemption limit is 3 lacs, no tax to be paid. Like that in 2 to 3 year 10 lakhs corpus will be created. Then i can generate income by investing in stocks, fds

Ans: 01. You are justified in concluding that any amount donated by karta, will be subject to clubbing provisions u/s 64 of Income Tax Act.
02. Any gift from other sources (other than relative) is exempt up to a maximum of Rs.50,000.00 in a year. You may proceed in the way you have suggested.
Most welcome for any other clarifications. Thanks.

Asked on - Nov 05, 2024 | Answered on Nov 08, 2024

Sir thanks for valuable reply. My friend also told that karta can give interest free loan with an intention of repayment. Is this true? Can i give loan like that through loan agreement. Did my huf have to show loan amount in itr under any section. And my final doubt is if my huf repays loan amount to me, did i have to show it in my itr as it is only principle received without any interest.

Ans: 01. Karta may give loan (with Interest or Interest Free) to HUF, which shall be returned after some time, but through banking channels only.
02. In case of Interest on this loan, the Interest part can be claimed as expenses (deduction) from the Income generated by HUF.
03. These transactions need to be disclosed in both ITRs (of Karta & HUF's).
Hope this clears all your doubts. However, most welcome for any further clarifications. Thanks.

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