08 May 2013
I am karta of my HUF. Another members of my HUF are my wife and 1 year old daughter. I have bank Fixed deposit of rs. 4 lac in HUF name. Can I withdraw Fixed deposit money of HUF and repay my personal home loan? Please guide.
09 May 2013
dear karta and his HUF has independent status in income tax..
karta cannot withdraw money from his HUF.. however he can take loan in his personal name from HUF and then make repayment of his loan..
in addition to the above, as per section 10(2) any sum received by a person as a member of a HUF, where such sum has been paid out of the income of the HUF ( whether for current F.Y. or accumated income of earlier years) is exempt in the hands of individual..
therefore you can withdraw some reasonable money from HUF in the name of Karta..
23 June 2013
The provisions of section 171 for partial part-ion has been withdrawn and no part of the money can be taken from HUF in the form of withdrawal or in form of Gift. Hence, you have to take loan from HUF and pay the loan and then you have to refund the HUF funds.
HUF funds can be spent in the marriage of any members and other occasions but not for the benefit of the members till there is full partition.