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HUF creation - stamp paper necessary ?

n000b (OWNER) (33 Points)

25 August 2011

Hello,

I have created an HUF (me and my wife), and applied for a PAN card for the same.

Now , i had created it on a normal paper and not a 100stamp paper. Although someone told me now

that the 'declaration' needs to be prepared on the stamp paper .

Please suggest what is truth , ? I have already applied for the PAN card and now if i create a fresh declaration the stamp paper will have a later date than the one written on my PAN card application.

Pls guide!

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11 Replies

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
Replied 25 August 2011

but on PAN card the date of Incorporation comes is the date of birth of your first child ,

so why to worried???

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n000b (OWNER) (33 Points)
Replied 25 August 2011

I don't have a child. It is an HUF for the moment for me and my wife.

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
Replied 25 August 2011

what date you put in PAN application form

n000b (OWNER) (33 Points)
Replied 25 August 2011

Applied for PAN card with date Aug23rd. ( i made a declaration as per general format on this site) on Aug23rd , (but on plain paper)

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
Replied 25 August 2011

but for what purpose you applied for HUF PAN Card,

Up to My Knowledge HUF Comes in to existance not After Marriage But After First Child only.

The Date of Birth of First Child is Your Date of Incorporation of HUF.....

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n000b (OWNER) (33 Points)
Replied 25 August 2011

I am informed that you can form HUF the next day after marriage.

CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
Replied 25 August 2011

please see the Income Tax Act.

there is Mentioned about formation of HUF

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 25 August 2011

Originally posted by : Rasesh Tanna
	Hello, I have created an HUF (me and my wife), and applied for a PAN card for the same. Now , i had created it on a normal paper and not a 100stamp paper. Although someone told me now that the 'declaration' needs to be prepared on the stamp paper . Please suggest what is truth , ? I have already applied for the PAN card and now if i create a fresh declaration the stamp paper will have a later date than the one written on my PAN card application. Pls guide!

you can get it stamped with treasury, in this way the date stamped later will not effect the originality of the document. visit govt treasury of your city or handover to any stamp vendor with request to get it stamped with Rs 100/- stamp duty.

it will serve your purpose

praveen (Chartered Accountant) (6971 Points)
Replied 26 August 2011

Ya you can form HUF as soon as you are married. Date on the PAN card can be any date after marraige.

But if you are doing for saving taxes , be careful that the clubbing provisions might apply.

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n000b (OWNER) (33 Points)
Replied 26 August 2011

Praveen,

Thanks for your reply.

My CA has advised that this will be treated as a separate file and income of HUF will be treated separately and will not be clubbed to mine or my wife's income.

Pls give your helpful advise.

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 26 August 2011

yes HUF is a separate identity for tax purpose, however avoid transactions between individual and HUF files, and keep HUF accounts fully separate from individuals, otherwise clubbing will get initiated and HUF income would get clubbed in hands of husband or wife, whoever has higher income.