Huf
ashish khandelwal (article) (166 Points)
18 June 2015
How will HUF earned money? Can karta Gift money to huf so that it can start business?
4 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 18 June 2015
Read the link for more details: https://www.charteredclub.com/huf-capital/
but the 1st point about gifts from relatives of members of HUF, not sure about it, its debatable.
Gifts from members of HUF are not taxable and hence gift from karta is not taxable.
Rashi Bajaj
(CA)
(752 Points)
Replied 18 June 2015
HUF can get its initial contribution from members and their relatives without inviting tax liability. However, members contributing to HUF beware, income derived from member contribution is liable to be clubbed in the INDIVIDUAL's income.
About how can an HUF earn money, you can start a business in the name of HUF, a property belonging to the HUF can be rented out, etc.
ashish khandelwal
(article)
(166 Points)
Replied 21 June 2015
if income is clubbed with individual then how will it benifitted my tax reduction.
how can huf have a property?
Rashi Bajaj
(CA)
(752 Points)
Replied 22 June 2015
Do not gift it. Show it as a loan. If karta has availed loan, then charge loan to HUF also. else interest free is OK.
Recent Topics
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
Related Threads
CAclubindia
