formation of HUF

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seema singla (Querist)
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22 December 2008 I want to form a HUF. The members will be my husband, myself and two sons ageing around 7 and 5 years. Plz tell me how to form a HUF.What formalities I have to complete for. Somebody has told me that beside applying for PAN, there will be a deed. Can anybody provide me a copy of deed and others if any.
Further, my father in law wants to gift some cash amount through bank to the HUF. I want to know whether the interest amount on the same will be taxable in the hands of HUF or My father-in-law.
Also, What type of amount, property should be deposited by my in-laws in the accounts of HUF so that the income is taxable under HUF.
Plz ans
Thanx

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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22 December 2008 HUF is not an artificial entity which is to be formed by executing any deed. You are having a family constituting yr husband and sons do represent a HUF. Any gift received in cash which may or may not be supported by a Gift Deed/Declaration be deposited in a bank account in the name of HUF. Any direct or indirect income generated out of such funds will be construed as the income of the HUF and taxed accordingly.

seema singla

seema singla (Querist)
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22 December 2008 Thanx for the ans. Sir
But the Bank asks for a deed to open an account.
What to do
Plz reply
Thanx

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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22 December 2008 You simply provide them with a list of members and coparcener members with name, sex, age and relationship with the Karta who should be the eldest male member of the family.

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