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Query regarding huf

319 views 5 replies

Mahesh

Proprietor

45 Points Joined December 2016

Hi I am 49 years old and have a family consisting of wife and two daughters aged 18 years and 12 years and I run a small propreitorship firm,marketing and promoting products of foreign companies in India on a commission basis. 1.) I would like to know whether by forming an HUF would be a legal way to lower my income tax. 2.) What will be the advantages and disadvantages of forming such an HUF. 3.) What is the procedure for forming an HUF ? Thanks & best regards.

Replies (5)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210662 Points Joined July 2016

Hope the attached file will clarify your all queries.

Sanjay S

Chartered Accountant

1375 Points Joined August 2012

A summary of details regarding tax planning through HUF is given in the image below:

Procedure for setting up a HUF

Step 1: Create HUF Deed. The 1st Step in creating a HUF is to create the HUF Deed. ...
Step 2: Apply for HUF PAN Card. As a HUF is treated as a separate entity different from its members, a HUF is required to apply for a separate PAN Card. ...
Step 3: Open HUF Bank Account. ...
FOR MORE DETAILS ... VISIT: https://www.charteredclub.com/create-huf-deed/