New Delhi, Aug. 18 -- An NRI living in the UK asked Mint Money about gifting savings to his father's HUF. He wanted to know about possible tax implications.

Now, gifting money doesn't create tax liability for him. This is because gifts made by a person aren't taxable for the giver.

However, the HUF's tax treatment needed separate consideration. Under the Income Tax Act 2025, HUFs receiving gifts are subject to specific rules.

Generally, money received without consideration counts as taxable income. This falls under "Income from Other Sources" for tax purposes.

An important exception exists for gifts from relatives. For HUFs, members are legally considered relatives under this provision.

This exception applies since the questioner is ...