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
- Gratuity under CTC
- GST refund paid as estimated tax liability
- Salary Income and Professional services income
- Sec 54 and TDS on sale of property
- Airbnb Manager - I manage properties for owners
- Wrong head ed for late fee
- Inter Company trnafer
- Job work-Reg
- Who is liable to pay GST if bank charges excl GST
- Cost of Acquisition IPO cases
Related Threads
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
