Want a create a HUF
This query is : Resolved
11 May 2010
One of my relative has recently got MARRIED...
He's already having an individual Income Tax file...
However he wants to create a HUF and also an Income tax file of his wife...
How can he do so and what shall be the source of his initial CAPITAL?
He's already having an individual Income Tax file...
However he wants to create a HUF and also an Income tax file of his wife...
How can he do so and what shall be the source of his initial CAPITAL?
11 May 2010
Revised
Child Not Required to create huf:- As per Guwahati High court in the case of Arjun Kumar Jhunjhunwalla & Sons(1997) a Single male member, after marriage can form HUF.
Even with daughter you can form huf:- Even in SC in Surjit Lal Chhabda case has ruled that Male member with wife and unmarried daughter can form HUF.
Also in Madras High Court in the case of R. Subramania Iyer opined that “…Creation of Hindu Undivided Family is a God Gifted phenomenon. As soon as a married Hindu gets a Child, a new HUF, undisputadely comes into existence.
Read more: http://www.taxguru.in/income-tax/got-married-create-huf-to-save-tax-format-of-deed-for-creation-of-huf.html#ixzz0nmKWZqIC
Child Not Required to create huf:- As per Guwahati High court in the case of Arjun Kumar Jhunjhunwalla & Sons(1997) a Single male member, after marriage can form HUF.
Even with daughter you can form huf:- Even in SC in Surjit Lal Chhabda case has ruled that Male member with wife and unmarried daughter can form HUF.
Also in Madras High Court in the case of R. Subramania Iyer opined that “…Creation of Hindu Undivided Family is a God Gifted phenomenon. As soon as a married Hindu gets a Child, a new HUF, undisputadely comes into existence.
Read more: http://www.taxguru.in/income-tax/got-married-create-huf-to-save-tax-format-of-deed-for-creation-of-huf.html#ixzz0nmKWZqIC
12 May 2010
Shri Suresh Ji....
I disagree with ur reply!
To form a HUF-Their is no need for waiting for a child..
A husband and wife alone can create a HUF.
To further clarify on above...Follow the link below and u will know:
Reagards!!
(ALOK)
http://www.simpletaxindia.org/2008/05/how-one-can-create-hufhindu-undivided.html
I disagree with ur reply!
To form a HUF-Their is no need for waiting for a child..
A husband and wife alone can create a HUF.
To further clarify on above...Follow the link below and u will know:
Reagards!!
(ALOK)
http://www.simpletaxindia.org/2008/05/how-one-can-create-hufhindu-undivided.html
12 May 2010
I think he can create a HUF with his wife, no need of child for creating HUF. he also retain individual Income Tax file.
12 May 2010
One of my relative has recently got MARRIED...
He's already having an individual Income Tax file...
However he wants to create a HUF and also an Income tax file of his wife...
How can he do so and what shall be the source of his initial CAPITAL?
He's already having an individual Income Tax file...
However he wants to create a HUF and also an Income tax file of his wife...
How can he do so and what shall be the source of his initial CAPITAL?
12 May 2010
refer that link only
http://www.simpletaxindia.org/2008/05/how-one-can-create-hufhindu-undivided.html
http://www.simpletaxindia.org/2008/05/how-one-can-create-hufhindu-undivided.html
12 May 2010
to create an HUF we needs to study the provision of Gift Tax for the introduction of intial capital,
Gift tax act says that gift to close relative is not taxed under the head of income from other source, as the HUF creation, since the HUF is not relative as per the definition given in gift tax act hence will be treated gift to other however up to Rs. 50000/- can be given out of self generated income, or in excess of Rs. 50000/- will be taxed under income from other source.
Gift tax act says that gift to close relative is not taxed under the head of income from other source, as the HUF creation, since the HUF is not relative as per the definition given in gift tax act hence will be treated gift to other however up to Rs. 50000/- can be given out of self generated income, or in excess of Rs. 50000/- will be taxed under income from other source.
12 May 2010
For:
Shri Aditya Maheswari JI...
__
In that articleof CA Sanjeev, their is no facts mentioned above,, how can a layman like me forming a new HUF,,bring the initial CAPITAL??
Nyways!!
Shri Aditya Maheswari JI...
__
In that articleof CA Sanjeev, their is no facts mentioned above,, how can a layman like me forming a new HUF,,bring the initial CAPITAL??
Nyways!!
13 May 2010
Dear any one like relative can made gift to such HUF for creation of capital.
13 May 2010
Dear Alok
Could u please first tell us what the person intends to do with the HUF and will there be any income in the HUF so that a capital is needed.
If in the current year there is no income in the wifes account and HUF then take gift from anyone upto Rs. 150,000/- or Rs. 125,000/-. Since the basic exemption will not be crossed no tax will be paid and this would become the starting capital for the HUF. And after that the HUF can do share trading and earn in trading in shares and hence build up the capital.
Could u please first tell us what the person intends to do with the HUF and will there be any income in the HUF so that a capital is needed.
If in the current year there is no income in the wifes account and HUF then take gift from anyone upto Rs. 150,000/- or Rs. 125,000/-. Since the basic exemption will not be crossed no tax will be paid and this would become the starting capital for the HUF. And after that the HUF can do share trading and earn in trading in shares and hence build up the capital.
13 May 2010
Mr. Maheswari
I also read from the link as provided by you, but I have one question,
as a father cane gift the money and property to the son's HUF, in the article it has clreafied that the father making gift to the newly created HUF of his son can keep at bay both saction 64(2) & section 56(2), is it correct,
however it means that any gift which is made as above will not be taxed in father's hand as well as in the hand of HUF and income arising out of gift property or money will be taxed in the hand of HUF.
I also read from the link as provided by you, but I have one question,
as a father cane gift the money and property to the son's HUF, in the article it has clreafied that the father making gift to the newly created HUF of his son can keep at bay both saction 64(2) & section 56(2), is it correct,
however it means that any gift which is made as above will not be taxed in father's hand as well as in the hand of HUF and income arising out of gift property or money will be taxed in the hand of HUF.
13 May 2010
The clubbing provisions will not apply in case father gifts in the child HUF.
However the same the will lead to taxation in the hands of the HUF if amount exceeds Rs. 50,000/- as a HUF cannot have any relative.
However the same the will lead to taxation in the hands of the HUF if amount exceeds Rs. 50,000/- as a HUF cannot have any relative.
14 May 2010
To introduce as initial capital; one may show as FAMILY RECEIPTS during the year according to the ECONOMIC STATUS of the whole family (bigger than HUF likely to be assessed under Income Tax).
For example; just show Rs.12,000/- as Family Receipts received during various ceremonial occassions from relatives.
This way one can start his HUF.
Marriage gifts can also be introduced in common hotch-pot of HUF.
If one wish to show marriage gifts in her wife's name, it can be done so.
First of all; take PAN of both.
HUF PAN can be received by submitting photo copy of Personal Bank Account of Karta and no further documents are required.
For example; just show Rs.12,000/- as Family Receipts received during various ceremonial occassions from relatives.
This way one can start his HUF.
Marriage gifts can also be introduced in common hotch-pot of HUF.
If one wish to show marriage gifts in her wife's name, it can be done so.
First of all; take PAN of both.
HUF PAN can be received by submitting photo copy of Personal Bank Account of Karta and no further documents are required.
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