Dear Sir, can an HUF give cash gift to a member for investing in his own PPF & PPF of his minor daughter including in investing in the sukanya samriddhi account of his minor daughter.

Reply: Under section 56 relative  in case of a Hindu undivided family, means any member thereof. Therefore, any gift given by HUF to its members in exempted u/s 56(2).

However in case ITA No.1906/Mum/2014 Shri Ateev V. Gala “relative” explained in Explanation to section 56(2)(vi) of the Act includes “relatives” and as the assessee received
Gift from his “Huf”, which is “a group of relatives”, the Gift received by the assessee from the Huf should be interpreted to mean that the Gift was received from the “relatives” therefore the same is not taxable under section 56(2)(vi)

Further As per Sec 10(2) subject to the provisions of sub-section (2) of section 64, any sum received by an individual as a member of a Hindu undivided family, where such sum has been paid out of the income of the family, or, in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family

As Gift is recived by  a member of Huf and received amount is out of the income of family. Thus it is not taxable.