My Father as an HUF is a partner in a (Partnership) company & wishes to retire because of his age (77 years) & instead admit me as a partner which is accepted by the other partners.He also wishes to gift me his share of Capital in the said company.My Mother & Sister have agreed to sign on an NOC for this Gift to me.The other partners have also agreed for the same. My question is that if this arrangement is alright & possible & if not then what is the solution.Kindly suggest. Thanks & Regards Atul
Hi,
The arrangement seems to be ok. However, gift received by an Individual from the HUF can be treated as income because HUF is not a relative of an individual.
However, gift received by an Individual on occasion of marriage is not taxable. So if you are not yet married and about to get married, you can take capital of your Father’s HUF as a gift at the time of marriage.
Please feel free to call/ revert on case you need more clarity
Thanks and regards,
Abhishek Dugar
CA CS B.Com
Hello,
If am not wrong then your father is retiring and you are stepping in. In such a case No tax is payable by either of you.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hi,
The gift by your father, of his share in the partnership firm, to you will be exempt.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
