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HUF ITR Filing

johny (own) (46 Points)

07 January 2021

I would like to know if we can skip ITR filing for HUF if the income is less than 2.5lk (NIL slab) but maintain income and balancesheet for personal use incase needed.

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7 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 07 January 2021

Yes if your income is less than basic exemption limit then you can skip itr return or you can file nil return also but if you are maintaining books of accounts then i would suggest to file return

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Kapadia Pravin (17264 Points)
Replied 07 January 2021

Better to file return to keep continuity. No harm .

2 Like

SUNIL SAHARE (Accountant) (44 Points)
Replied 07 January 2021

Agree with K.P.

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Smit Shah (524 Points)
Replied 07 January 2021

Filing itr can be more beneficial

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Krishna Chaudhary (Accountant) (4531 Points)
Replied 07 January 2021

Yes u can

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johny (own) (46 Points)
Replied 07 January 2021

Thank you to all. We dont have bank account for HUF at the moment. Just wondering how to file HUF ITR without bank account.

1.We took HUF pan card few years back but never filed ITR since income has been less than 2.5lk ie NIL slab. I dont know if that HUF pan card is still active or not. Dow we need to link Karta's aadhaar with HUF pan card? or its not necessary?

2.Income of HUF is generated by lending money to others for interest,commission income from reasl estate broking, broker commission from finding rental houses for tenants. can the above all be considered as "Income from other sources" and file ITR1? or should they be considered as business income and file ITR3?

3.In ITR what does the other income mean? can you please name atleast 1o other income category that are commonly classified as other income?

4.Howmany years of old filing can be done now? If we file old filing , do we need to pay any penalty eventhough all those years its NIL slab olny, if penalty is there howmuch would it be?

5.At the moment we are not planning to buy any Fixed assets in that HUF. We are planning to trade and invest in stocks and invest in Fixed deposits. If anything happens to KARTA of HUF, can we close FD,Bank account,Trading account and transfer shares to any of the family members or nominee of the account? or do we need to get signature from all the family members of that HUF?

6.If anything happens to KARTA of HUF, (i)do we need to equally share the fund from FD and stocks to all the family members of HUF, or nominee of those HUF accounts can claim the benefit single handedly? (ii) when nominee is getting the money, do we need to consider that as income and pay tax for that? or its tax exempted without considering income or its tax exempted by considering as income

7. If I transfer 1lk to my father's HUF account and that HUF account generate income from FD or any other means, who is liable to pay income tax for that income for the first year, that HUF or me?

8.How to know who are the people named in that HUF PAN card? if we want to remove any of the family members name from that HUF pancard, can it be done if so how?

Thank you for your patience and help.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 08 January 2021

It is mandatory to file ITR if gross total income of an assessee, be it an individual, a Hindu Undivided Family (HUF), an Association of Persons (AOP) or a Body of Individuals (BOI), exceeds the maximum exemption limit. ... However, for a company or a firm, it is mandatory to file a return irrespective of income or loss.