HUF provisionsin relation to Income Tax act 1961

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Sandeep Gupta (Querist)
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01 May 2008 I want to about HUF formation,bank A/c opening,gift from realtives friend and any other for formation of HUF , intiial capital for HUF and source of income shown in ITR for the purpose of making white money only.No business carried out actually in name of HUF.Please help me.

Sandeep Gupta

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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01 May 2008 hie sundeep gupta
huf is not carrying any business uptill so why you want to introduced HUF in income tax act
if you want create a HUF then you will first apply for pan then you will open a bank a/c then you will get gift from relatives and friends but it is taxable in the hands of huf because there is no relationship u/s 56(2)(VI)of the same act but it is not taxable upto basic exemption i.e.150000/- f y 2008-09 bu tin huf there must be two persons

Sandeep Gupta

Sandeep Gupta (Querist)
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02 May 2008 Thanx sir .Pls clarify me that Mr. X (HUF)recived gift from Mr.X's mother Rs.21000/-for intial capital in Mr.X (HUF).Is it covered U/s 56 (2)(vi)i.e. gift from relatives.However it is exempt as below taxable limit.Pls reply me.

Sandeep Gupta

Sandeep Gupta (Querist)
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