Coparcener loan to HUF
This query is : Resolved
11 May 2025
A coparcener of a Hindu Undivided Family (HUF) wishes to provide an interest-free loan to the HUF through the capital account, with the intention of being able to withdraw the loaned amount from the HUF whenever needed. Are there any tax implications for the coparcener in this scenario?
Additionally, what documentation is required for such a loan? Is there a standard loan agreement format that covers details such as the loan amount, interest rate (if any), repayment terms, and consequences in case of default? Please share or repoint to any sample documents.
Please also clarify the tax implications specifically when a coparcener lends money to the HUF.
Additionally, what documentation is required for such a loan? Is there a standard loan agreement format that covers details such as the loan amount, interest rate (if any), repayment terms, and consequences in case of default? Please share or repoint to any sample documents.
Please also clarify the tax implications specifically when a coparcener lends money to the HUF.
17 May 2025
Loan from coparcener to HUF without interest will not be accepted by ITO, and the the income earned over the loan amount by HUF will be taxed under the loaner's PAN account, under clubbing option. Loan with existing bank interest rate may justify your intention.
28 September 2025
Good luck.....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- FORM 26A APPLICABILITY
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
