HUF TAXATION

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This query is : Resolved

chetan (Querist)

18 September 2009 Pls let me know whether a person who is an HUF asesse claim the tax benefit of Rs 1 lac in his file by paying his son`s LIC Premium ?If then u/s which section of the Act.The son is not a member in his father`s HUF file.Pls let me know as soon as possible. Thanks & regards

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

18 September 2009 The son should be a member of father's huf. Please check again. The lic paid for members can be claimed by huf.

chetan

chetan (Querist)

19 September 2009

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)

19 September 2009 huf can claim deduction when lic is paid for the members of the huf.

chetan

chetan (Querist)

19 September 2009 Thanks for the reply sir. The son is not a member of his father`s huf file. The son is having his own independant huf file with his wife as a member. In this case can the father claim the lic benefit if he pays for his son. Kind Regards

Amit Sheode

Amit Sheode (Expert)

19 September 2009 Basically the concept is going ahead on a wrong appreciation of law. HUF is a concept of HIndu customary law. Under the Hindu law son is a member of fathers HUF by birth & no amount of any other intervention can prevent him from being a member of the father's HUF. I am not sure whether it is legally correct for him to have his own HUF without demanding a partition of his father's HUF. Pls go through Hindu Succession Act for the procedure of demanding succession.
Thus in the present case I am of the opinion that the son is a member of his father's HUF & the legal validity of his own HUF is questionable.

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