Fixed Deposit in HUF
This query is : Resolved
01 March 2010
If someone creates a HUF and transfer money to HUF and invest in FD to earn Interest, can there be some issue from Income tax point of view.
There is no other business/Investment of HUF.
Is there any possibility of clubbing of Income with Karta?
There is no other business/Investment of HUF.
Is there any possibility of clubbing of Income with Karta?
01 March 2010
Yes, because it is diversion of income.
But future earning out of interest will be taxed in the hands of HUF.
But future earning out of interest will be taxed in the hands of HUF.
01 March 2010
Thanks Surendra..
But I want to add that this is tax paid income of Karta in the same year which he had earned from Salary, still can clubbed?
But I want to add that this is tax paid income of Karta in the same year which he had earned from Salary, still can clubbed?
03 March 2010
A karta can add his personal assets into the HUF pot.The HUF will be seperate entity and the individual will continue with his separate identity.The provisions of S 56(2) wrt gifts may apply in the year of receipt.
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