Are NRIs taxed on money gifted to a Hindu Undivided Family?

The taxability of receipt of the gift in the HUF’s hands, though, needs to be considered separately. Under the provisions of the Income Tax Act, 2025, money usually received by an HUF as a gift without consideration is taxable as ‘Income from Other Sources’. However, an exception applies where the gift is received from a ‘relative’. In the case of an HUF, its members are treated as its relatives. Since you are a member of your father’s HUF, the gift received from you would qualify for this exception. Accordingly, the gifted amount would not be taxable in the hands of the HUF.