hi, I have recently created a HUF which consists of me as Karta (by taking NOC from dad) and my dad as Coparcener. HUF Deed includes only me and my dad.
Suggest safe options from following
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Option 1: BRINGING RENTAL INCOME TO HUF
I am co-owner in a purchased office with my parents (during 2005, my age around 23 at that time), NOW, I want to bring in rental income to HUF without getting Clubbing provision.
> Query 1. From the following which is safest way without getting IT NOTICE, or tell me best solution available with you.
1. Making a registered gift deed by karta (doner) to huf (donee) without any consideration, so, Will this trigger clubbing provision on earned rent or
2. making first LONG LEASE agreement between karta (landlord) and HUF (AS A TENANT) , (where 3000 rent paid by KARTA to HUF & In the second agreement, by way of sub tenancy or Leave & Licensing same office at 30000 license fees from licensee MR.ROHIT , so karta receives 3000 rent from huf, and huf receives 30000 license fees from its licensee? Here as HUF is receiving License fees and also paying rent to Karta so clubbing provisions will apply in such a case?. ) or
3. Karta makes will in favor of HUF, so inheritance is denied from karta’s side and SO DOES clubbing apply here.?
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Option 2. LOAN
To bring my investment in HUF without clubbing,
1. Karta gives loan to HUF at 0.5 to 2% per year and
2. huf makes investment , earns interest at approx 10 % per year
QUERY 2.
1. Does IT Dept allows 0.5 to 2% annual interest Income tax??
2. How much loan can be given to huf safely?
3. for this , is it Required to make a notarised LOAN agreement for IT Dept? And is this safe option?
4. How to disclose to income tax about transferred amount as loan?
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Option 3, GIFT
Any income from gift given by karta or coparrcener to HUF will bring clubbing provision so,
if,
QUERY 3
1 > My UNCLE’S SON , a BLOOD RELATIVE, BUT NOT MEMBER OF HUF , (as not included in HUF DEED), AND AS he is NOT MEMBER OF HUF can he GET CLUBBING?,
2. SO ANY GIFT FROM HIM OR DISTANT RELATIVES WHO ARE NON MEMBERS FATHER’S SIDE WILL BE TAX FREE?
3 . >> and DOES special OCCASION REQUIREd to validate GIFT?
most important >> 4. yearly how much gift from relatives and Loan from Karta to HUF should be transferred safely without getting Notice by IT Dept , in this HUF's first commencement year?
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Option 4 , INHERITANCE
1. In ancestral property from my mother’s side can i bring MY 33 % share+ additional 33 % share received as gift from my aunty?
2. Which documents (gift deed etc?) need to be prepared, where HUF will be mentioned as beneficiary ?
3. is MOTHER'S LINEAL side property is allowed to be added in HUF as inheritance?
And
>> apart from above , in first commencement year of HUF, SAFELY HOW I can RAISE HUF CAPITAL AND TRANSFER RENT AND FUNDS WITHOUT involving CLUBBING PROVISION and IT NOTICE ? (Our income includes from rent of co-owned property and interest from investments)
Thanks and kind regards,
ritesh shah
CAclubindia
