Complete legal analysis of gifts received by an HUF under Section 56(2)(x), relative exemptions, and statutory clubbing under Section 64(2)
An authoritative guide on gifts given to and received by an HUF, tax exemption thresholds, relative vs stranger gifts, mandatory gift deeds, and anti-avoidance clubbing rules.
Gifts received by an HUF from its lineal members are exempt from tax upon receipt under Section 56(2)(x). However, income generated from gifted property is clubbed in the hands of the donor member under Section 64(2).
Section 56(2)(x) and Section 64(2) Mechanics
Understanding the difference between tax exemption at receipt and subsequent income clubbing is critical. See our [HUF Taxation Guide](/knowledge/huf-taxation).
Gifts from non-relatives exceeding ₹50,000 in aggregate are fully taxable in the hands of the HUF under Income from Other Sources. Also see our [HUF Creation Guide](/knowledge/huf-creation).
Clear answers to common client questions
Yes. Father is a lineal relative; the gift is tax-free in the son's HUF under Section 56(2)(x).
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