How does creation of an HUF provides tax benefits to the assessee?
Query - creation of HUF as a tax planning measure
Vidya (Service with a reputed CA firm) (75 Points)
03 March 2010
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 03 March 2010
income from other sources like interest , share trading, capital gain, or even a new business can be run in the name of huf, and by creating a separate huf u will be able to get threshhold basic exemption limit as well 80 c and other benefits.
Vidya
(Service with a reputed CA firm)
(75 Points)
Replied 03 March 2010
Thank u sir.
But doesn't that amount to open evasion of tax.. v wont be doing any sort of business out of that HUF!!
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 03 March 2010
are yaar anything can be planned in such a way that it will not look tax evasion just proper planing and documentation needed
vishal
(article ass)
(27 Points)
Replied 17 October 2012
CAclubindia
