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Investment through huf

Hemant (CA) (33 Points)

22 March 2017

Hello Group members,

Wanted to check if I can divert my income to generate income (Say, investment in mutual funds or equity) to HUF and show income of investment to be part of HUF

if I can gift every year some 2-3L to HUF out of individual salary and invest this sum and not club the investment income with my individual income

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2 Replies

(Guest)

u can transfer the amout to huf a/c and then it

as tax free loan given or advance given

No tax hurdle for interest-free loans!

Department cannot dispute a situation where a taxpayer uses his own capital as per his desire

Clubbing of income earned from ineterst free loan

/experts/clubbing-of-income-earned-from-ineterst-free-loan-2275154.asp

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 23 March 2017

Wanted to check if I can divert my income to generate income (Say, investment in mutual funds or equity) to HUF and show income of investment to be part of HUF

Hi,

If you give the loan as interest free to HUF than you can generate income via HUF.

Or if I can gift every year some 2-3L to HUF out of individual salary and invest this sum and not club the investment income with my individual income

If you gifting money than clubbing provision is attracted.

So please give interest free loan to huf.