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Confused Husband: Can My Wife Donate Her Stree Dhan to HUF?

Tax Expert - Answered on Nov 08, 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 Nov 05, 2024Hindi

Sir can my wife donate her stree dhan to huf

Ans: Your wife may transfer her Stree Dhan to HUF (of which she is a member herself), BUT as a Gift & not as Donation.
Donation is meant for charitable purposes only. In this case HUF is not a charitable institution. So there can't be any donation but a Gift.
Most welcome for any further clarifications. Thanks.

Asked on - Nov 09, 2024 | Answered on Nov 12, 2024

Ok sir thanks for reply. Small doubt. Gift means is the income generated from that stree dhan taxable in my wife's hand? Is any deed necessary or stamp duty for gifted amount

Ans: 01. You have another option of giving Loan instead of Donation or Gift. This loan shall be returned in due course. Both these transactions should be through banking channels only, to ensure its acceptability by the department.
02. This transaction may carry interest also. In this case Interest paid will be treated as expense of HUF & Interest received will be treated as income in the hands of your wife. This interest income should be declared in ITR & tax, if any, should be paid.
Most welcome for any other clarification. Thanks.

Asked on - Apr 06, 2025 | Answered on Apr 09, 2025

Sir, we were married in 2012, but recently opened huf pan. Now I have to file itr. My doubt is can I file itr for previous years showing 2,50,000 gift income/year as It is tax empemt? Also we received gifts of few lakhs between 2012-2024 during marriage and functions. Can we show that funds as huf capital now after pan creation. Huf incorporation date as per pan is 29/03/2012. But pan issue in 2024 october

Ans: 01. Kindly note that only Gifts received at the time of marriage are exempt for Individuals & not HUF. You can claim any gift as marriage gift only in the year of marriage & not at any later stage.
02. Gifts received on other functions are not exempt, unless received from relatives.
03. Gifts received should preferably be through banking channels. This shall prove authenticity of the gift.
04. Gift from any member of the HUF to HUF is exempt & is not taxable in the hands of HUF.
05. You cannot claim that Gifts received by you or your spouse in previous years, belong to HUF, since you have not transferred the amount to HUF account in due course.
06. Before proceeding further, please check, for how many years you can file your ITRs ?.
Most welcome for any further clarifications. Thanks.

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