Existing provisions to received any Gift under the head of "Income from other Sources" under Clause (vii) of sub-section (2) of section 56, any sum or property received by an individual or HUF for inadequate consideration or without consideration is deemed as income.
In the budget-2012 the amendment will take effect from 01.10.2009 that in case of an individual or HUF should take receipts from relatives are excluded from the purview of this section and are therefore treated as not taxable and no limit of Gift (Property, metal or cash). The definition of relative as given in this sub-clause is only in relation to an individual and not in relation to a HUF.
Therefore, it is proposed to amend the provisions of section 56 so as to provide that any sum or property received without consideration or inadequate consideration by an HUF from its members would also be excluded from taxation.
In the budget-2012 the amendment will take effect from 01.10.2009 that in case of an individual or HUF should take receipts from relatives are excluded from the purview of this section and are therefore treated as not taxable and no limit of Gift (Property, metal or cash). The definition of relative as given in this sub-clause is only in relation to an individual and not in relation to a HUF.
Therefore, it is proposed to amend the provisions of section 56 so as to provide that any sum or property received without consideration or inadequate consideration by an HUF from its members would also be excluded from taxation.
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