It is very well possible for the HUF to make gift to any member of the HUF to reasonable extent with the consent of the members/coparcener. In case of gifts to members of the HUF, it is advisable to have the gift deed drafted in such a way so as to incorporate the consent of all the members in the gift deed itself so that there is no problem in the future challenging of the gift from the members themselves. In this regard, the Punjab & Haryana High Court in Raghbir Singh’s case (1958) 34 ITR 719, held gift to the spouse of Karta to be valid primarily because the son, the only other coparcener had no objection to it.
A draft of such a gift is given herein below:-
DECLARATION OF GIFT
I, DDR, Karta of DDR HUF, residing at Chowringhee Road, Kolkata 700 071 do hereby solemnly affirm and declare as follows:
That out of natural love and affection, I as a Karta of DDR HUF made an absolute and unconditional gift of Rs 100000/- (Rupees one lac only) to Miss CDR, my daughter and coparcener of the family in order to maintain and educate her.
That the said gift was made out of the funds belonging to DDR HUF exclusively.
That the said gift was made by Cheque No. 444444 dated 11/08/2011 drawn on State Bank of India, Burra Bazar Branch.
That Miss CDR accepted the said gift by signing the acceptance on this gift1deed.
That the said gift was made after obtaining consent of all the members of the HUF who have also signed this gift as a token of acceptance of the gift being made herein.
That the HUF shall have no right, title, interest, claim or demand whatsoever into or upon the said gifted money or any part thereof any time hereinafter.
That DDR HUF is assessed to Income-tax vide PAN NO. AECPT9561H
That the statements made hereinaboye are true to the best of my knowledge and belief.
Declared at Kolkata
This 21st, day of April, 2014
WITNESS AND CONFIRMATORIES TO THE DEED
Taxation in Business & Profession [Section 28 to 44]
Computation of income under the head 'Profits and Gains of Business or Professions' [Section 28 to 44]
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