Dear Friends,
I have a query regariding HUF accounts. It is well known fact that opening HUF account is a very good tool for tax minimising / Planning. I have a few queries regarding HUF account. Kindly help get answers to all these questions.
(1) If a person has got only high salary income (say 10 to 15 Lacs per annum) and no income from other sources like rent, business etc, how he can deposit money in to his HUF account. Obviously, money he will transfer from his salary account to HUF account will be tax paid money. ( TDS already deducted on salaries & if TDS is not deducted, he will be paying income tax while filing his income tax return.)
(2) Is there any limit on transferring money in to HUF account by coparceners and members from their respective income tax paid incomes ? If yes, what is the limit.
(3) My understanding about this issue is, you can deposit upto Rs.300000 in to your HUF account and no tax liability will be there on HUF.(considering Rs.200000 tax exemption limit and Rs.100000 investment by HUF under sec 80C. But, what if coparceners and members deposit their income tax paid income in to HUF account. That also will be considered as income for HUF ?
(4) What type of expenses can be made from HUF account and whether the same will be exempted from HUF Income.
(5) What if someone wants some money from HUF account for his individual use / expenses etc.
(6) To my knowledge section 64 (2) relates to clubbing of income of an person if he receives some income in his individual Account and some additional income in his HUF account. But, will this section apply if a person / member / coparcener deposites money in to HUF account ?
Thanks in advance for your answers.
JYOTINDRA THAKAR
CAclubindia
