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Transfere of Funds from HUF

Tax planning 4204 views 4 replies

Hi,

Please let me know the tax implications, if I transfer funds from my HUF account to my saving account.

Regards

Sunil

Replies (4)

It will depend upon the purpose of transfer.

If you are transfering it for short time with an intention to return it back, then it wont be taxable. It will be considered as loan given.

However, if you transfer without any consideration as a gift, then it will be taxed under other sources to you, if the same is in excess of Rs.50000

Hi, is there any way to transfer money permanently 

you can transfer, but then you cant show them as transferred to any specific persons. You can withdraw for the purpose of household expenses of for the personal expenditure to be incurred on HUF. The ultimate way is the division of HUF, but with this, the HUF ceases to exist. So division of HUF is not the solution.

for welfare purpose of any member of HUF money can be withdrawn, but with specific purpose, and not mere account transfer, in case of account transfer simple way, its damage to remaining members, so use the funds so transfered for welfare of HUF member, 


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