Can anybody tell me that how can we make HUF? And how we create the capital in such HUF??
valji
(Accounts manager-MBA)
(2150 Points)
Replied 06 September 2011
ELEDER of the family member become karta ,mostly HUF is made for distribution of income for save income tax ,the person who are having family business
valji
(Accounts manager-MBA)
(2150 Points)
Replied 06 September 2011
Under the Income Tax Act, an HUF is a separate entity for the purposeof income tax return.
The same tax slabs are applicable to HUF as to individual assessee.
You can not transfer your own assets/money into HUF.
If you have ancestral propertyand earning some income from thisproperty, then it is better to transfer this asset to HUF and savetax up to exemption limit applicable to individual.
You can transfer the money received on sale of ancestral property /assets into your HUF.
The income from property of HUF can be further invested in instruments such as shares, mutual funds, etc. and will be assessed under HUF.
Existence of property or multiple members is not a pre-requisite to create HUF. A family which does not own any property may still have the character of Hindu joint family. This jointness is understood in terms of faith and food. This is because as a Hindu is born as a member of the joint family.
Any gifts received by the members of HUF (birthday, marriage, etc.) can be treated as assets of HUF.
check the expert view in this foram
/experts/huf-formation-381.asp
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