Tax advantage of adding HUF in LLP
Anamol Agrawal (29 Points)
23 June 2023
is there any kind of advantage if we make a HUF a member of LLP
Anamol Agrawal (29 Points)
23 June 2023
B Durga Prasad
(Student)
(175 Points)
Replied 23 June 2023
Including a Hindu Undivided Family (HUF) as a member of a Limited Liability Partnership (LLP) can provide certain tax advantages, such as:
Income Splitting: Allocating and distributing income among HUF members may result in tax savings if they are in lower tax brackets.
Separate Legal Entity: LLP's separate legal entity status provides limited liability protection and flexibility in tax planning.
Tax Treatment: LLPs are taxed as separate entities, while HUFs have their own tax rules. Combining the entities allows for income splitting and optimizing tax liabilities.
Compliance Requirements: Both LLPs and HUFs have specific compliance obligations, including filing annual returns and maintaining proper accounting records.
To learn more about Hindu Undivided Family click here
For more detailed information, visit Swipe Blog.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
