Huf

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Amit Garg (Querist)
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09 March 2012 Respected Sir/Madam,
I want to know about the practical overview regarding HUF.How we can save income tax by creating HUF?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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10 March 2012 HUF is not a matter of its legal creation. It already exists where family is there.
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For the purpose of Income-Tax; you can apply for PAN Card first and then you may file return of your income firstly by showing your family receipts which you receive on different ceremonial occasions.
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With the own funds and taking unsecured loans; you can start business of which the HUF is the proprietor.
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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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10 March 2012 I hope this link will give you clear and broad understanding on HUF.
http://www.simpletaxindia.net/2011/05/huf-creation-tax-benefits-tax.html

Abhishek Ranjan Singh
ARS Solutions
+91 9022838615
email2ars@gmail.co
www.arssolutions.co.in
www.ars-solutions.web.com

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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02 April 2012 You should know what is HUF. HUF is an entity by birth for Mitakshara School of Hindu Law as the moment a child is born he is entitled for his share in the family properties. Now, it is not automatically as in case of unmarried child he does not have any member for claiming partition so till he is married he cannot form his HUF. Only after marriage he can form his HUF by undergoing the formalities of taking Gift from his mother or father and doing business with that money or he can take loan and apply for PAN Number and so on as suggested by the expert.