Tax planning via huf

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Jaydeep Trivedi (Querist)
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10 January 2013 My family consist of my parents and wife. So, we are four. I am earning person and because of salary income, I hardly find ways to save taxes. I think creation of HUF is the best solution for me. But I have some questions. They are:
1)How to transfer money while creating HUF?
2)Should HUF be of mine? or my father? What is advisable?
3)After creating HUF, how can I transfer money to HUF? so that correspondingly I can make further investments from HUF.
4)Last but not least. Is HUF only beneficial who have business income and not for salaried class people?

CA Neha Chauhan

CA Neha Chauhan (Expert)
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21 January 2013 Dear Jaydeep,

You can transfer money by Gift to HUF...The HUF should be of your Father...There is no such an issue as HUF can be helpful for tax planning for whole class of people.

Regards,
Neha Chauhan