Gift Deed Format For HUF

GIFT DEED FORMAT FOR HINDU UNIDIVIDED FAMILY (‘HUF’)

This Gift Deed is executed at [City] on [Date]

BY:

[Name of coparcener/member], son/daughter of [father’s name], resident at [residential address], having PAN [coparcener/member’s PAN], hereinafter referred to as the “DONOR” (First Party).

IN FAVOR OF:

[Name of HUF], a Hindu Undivided Family (HUF) having a place of assessment at [full address of HUF], represented by its Karta [Full name of Karta], son of [father’s name], having Permanent Account Number (PAN) of HUF [PAN of HUF], hereinafter referred to as the “RECIPIENT” (Second Party).

WHEREAS:

1. The donor is an existing coparcener/member of the HUF, as evidenced by the HUF deed clearly mentioning his/her details and relationship.
2. The donor confirms that he is the sole owner of the property, fund, or stock mentioned in the schedule below; there is no possibility of any third party having any share in the same and he has not taken any loan or advance on these assets from any public sector bank, private bank, non-banking financial company (NBFCs), etc.
3. This gift will be a significant factor in the creation of the assets of the HUF, which the donor is gifting of his own free will and desire, with the intention of enhancing the family wealth and to show love for the members and coparceners of the HUF. There is no scope for any kind of pressure, coercion or force in this and it is not acceptable.
4. The donor is not making this gift for the personal benefit of any particular member or coparcener of the HUF; it will be treated as pure family property, which will fully respect the rights of all coparceners of the HUF under Hindu law.
5. The donor confirms that there will be no future family, social, or legal disputes relating to the property which are related to the past.

NOW THIS DEED BEARS, DECLARES, AND WITNESSES TO THE FOLLOWING:

1. Absolute Blending Under Hindu Law
   

   The Donor, for himself and his heirs, executors, administrators, and assigns, hereby irrevocably and absolutely transfers, gifts, and blends the Asset described in the Schedule below into the common hotchpot of [Name of Karta] HUF. The Donor hereby waives all individual rights, titles, and claims to the said property in its entirety. The property shall cease to be ‘self-acquired property’ and shall be treated as ‘joint Hindu family property’ in the hands of all the coparceners of the family. In the future, no coparcener of the HUF will have the right to engage in any illegal activity to establish his ownership of the said asset.

2. Discussion
   

   This transfer is made out of pure natural love and affection. It is performed voluntarily, without any monetary or material consideration, coercion, force, or undue influence. If any government investigation reveals any irregularities in the said asset mentioned in the schedule, the orders and directions of the judiciary will be fully respected.

3. Handing Over and Accepting Possession
   

   The Donor has transferred physical, constructive, or electronic possession of the scheduled asset to the Karta of the HUF. The Karta has taken the asset into the common stock of the family for and on behalf of the HUF. This will be a significant step towards transparency. 

4. Compliance of Income Tax Act, 2025
   

   The parties hereby expressly declare and record their knowledge and understanding of the Income Tax provisions of India under the Income Tax Act, 2025, as follows:

• Tax on Gift (Section 92): Prior to April 1, 2026, the provisions of Section 56(2)(x) of the Income Tax Act, 1961, for tax on Gifts were applicable, which are now applicable under Section 92. The parties hereby irrevocably agree that since the Donor is an existing coparcener/member of the HUF, as per the details mentioned in the HUF Deed, the Donor will be treated as a ‘relative.’ Therefore, this receipt is exempt from tax in the hands of the HUF under Section 92 of the Income Tax Act, 2025. Hence, no income tax will be payable on this Gift.

• Clubbing of Income (Section 99): Both parties to the Gift Deed expressly understand and agree to the applicability of Section 99 (formerly Section 64(2)) of the Income Tax Act, 2025. Any direct income or profit arising to the HUF from the assets mentioned in the Schedule, whether from rent, business, investment, or capital gains from the stock market, will be added/clubbed to the individual income of the donor for the purpose of tax assessment. Since the property in question is not ancestral property, inheritance, or will of the HUF and is not derived from any independent business of the HUF, the income arising from it cannot be treated as the HUF’s own income.

• Tracking and Capital Accretion: Since the provision of income clubbing applies here, the HUF will maintain clear books of accounts to track the income received from this specific asset through a gift deed to ensure correct reporting in the donor’s individual tax year filing for income tax assessment.

• Income Tax Return (ITR) filing for HUF: It is the responsibility of the HUF to file its income tax returns on time and disclose the property, funds, and stocks received as gifts in its assets.

SCHEDULE OF GIFTED ASSET:
(Complete Asset Details)

• ( For funds Transfer through bank as a gift):
  

Details of Donor & HUF:
* Beneficiary Name: _________
* Bank: ________
* IFSC: ________
* Amount: ________
* Transaction reference (cheque/NEFT/RTGS) no. _________
* Date ________

• (For immovable property transfer as a gift):
  Type of Property: Land and Buildings/ Composite Property/ House Property/ Agricultural Land
  Complete address, area & ownership details.
  
  
• (For stocks/shares transfer as a gift):
  Demat Account No. /Client ID, Shares ISIN and Quantity.

In witness whereof, the Donor and the Karta (on behalf of the HUF) have executed this Deed on the date mentioned above.

_________________

(Signature of Donor)

Acknowledgment and Acceptance

I, [Name of Karta], Karta of [Name of HUF], hereby accept the commingling and gifting of the Scheduled Assets into the common pot of our HUF, subject to the conditions and legal information stated above.

______________
(Signature of Karta)

For and on behalf of [Name of HUF]

Witnesses:
1. Signature: ___________________ (Name and Address)

2. Signature: ___________________ (Name and Address)