I've just formed an HUF and a bank account in its name. Can I move 50lakh from my account savings account and make investment in the name of HUF? Would there be any tax implications for the HUF from this 50lakh transfer?
7 Replies
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 14 May 2022
Treat it as interest free loan by you to huf. No tax implications.
aditya awasthi
(7 Points)
Replied 15 May 2022
I see. Is it OK to give an interest free loan or do I have to charge some interest to avoid any complications in future?
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 15 May 2022
Yes you can charge some interest. That would be really ideal and good defence. May be even 6%
aditya awasthi
(7 Points)
Replied 15 May 2022
I don't want to charge interest unless i have to. I'm doing this to save tax and if it comes back I'll have to pay 30% tax.
If i have to do it, can I give a deferred interest loan i.e get interest in 20 years?
SC JAIN
(PARTNER)
(22 Points)
Replied 15 May 2022
If u give interest free loan but HUF earn income therefrom it may be questioned as diversion of income
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 15 May 2022
Under which section, can they add notional interest income ? It is very well possible to answer such question. Not to worry.
Recent Topics
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
- Need your valueble insight.
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
Related Threads
CAclubindia
