Huf

This query is : Resolved

Amit007 (Querist)
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15 April 2016 for tax saving can i make HUF PAN member - 1) father as karta, income - pension and bank interest. 2) my mother- income-housewife, she dnt have any income 3) my older brother- income - working in mnc company, he has 12 lac salary pa. 4) my sister in law- income- she is also working and she has rs 5 lac pa 5) myself - income - i have business loss so no income so can we make HUF account ? if yes then can we give our individual amt to HUF to make bank FD and earn bank interest till the rs 2.50 lac ( income tax exemption ) ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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19 April 2016 There will be two HUFs one is your father as karta and you and your mother as member. And the other one as your elder brother as karta and your bhabhi as member. Individuals cannot transfer their individual sums to their HUFs so as to make bank FD and earn interest on it in the name of HUF because of clubbing provisions u/s 64 in which entire bank FD interest will be clubbed in the hands of individual who has transferred his own money to the HUF