Loan to HUF by Karta

Nilesh jain (audit manager) (30 Points)

21 July 2011  

Hello to all,

Whether a HUF can take interest free loan from its Karta or karta's father  and can HUF invest this loan amount into Bank FDR. What are the ways by which a karta can transfer Rs. 10 Lacs into HUF in the same year without any tax implication.

Kindly guide in the above matter.

Thanks