Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Karta Transferring Funds to HUF

Sameer (Article) (124 Points)

27 November 2016

Can karta transfer funds to HUF >> via Loan / capital Introduction / Transferring Cash

Reply
Follow
Share

3 Replies

Nikunj Shiyani (Executive) (124 Points)
Replied 27 November 2016

Yes can transfer

Upgrade to CAclubindia Pro. Subscribe Now!

Sameer (Article) (124 Points)
Replied 27 November 2016

Any impact of Sec 56(2)(vii)... it will not be treated as Gift Right? Any specific Limits to introduce capital... I heard that Karta Can't introduce funds that easily in HUF... Income Tax Act is also unclear about the same.

RAM KUMAR GOEL (PROPRIETOR) (87 Points)
Replied 28 November 2016

Sameer Ji, Income Tax Act is quite clear. Here Section 56(2)(vii) will not be an hindrance but section 64 will be there and income from such transferred amount will be clubbed in the hands of the transferer i.e. Karta. Hence there will not be any use of such transfer of funds if that is to save taxes.