Huf funds invested in karta name

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 kvp/post office schemes
Q1. can they be bought from crossed chq of huf sb account in the name of karta with kyc of karta viz.pan card and address proof. (since huf pan not eligible)

Q2.can income accrued/received be treated as income of huf

Q3.on maturity post office will issue chq in the name of karta and as such will be deposited in the individual account (as the bank may or may not credit in huf sb account). Since this was investment was from huf funds , can this be again transferred to huf account. for further investment in viz.mutual funds or property.

Ankur Singhal

Ankur Singhal (Expert)
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07 January 2016 Dear
your modus operandi(i.e way of transaction) is wrong
Since the money T/f from huf to karta deposited in name of karta and its interest will be treated as income of karta and will be taxable in hands of karta.
Also pls tell me how you will show the fund tranfered by HUF to karta( i.e as loan given or gift)
also gift by huf are void.
Yes the karta can transfer the funds on maturity to HUF no problem in that.

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 thank you Ankur ji. clear now.

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Ankur Singhal

Ankur Singhal (Expert)
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07 January 2016 You are most welcome.