30 March 2023
Me and my wife are planning to create HUF. We have also booked an under construction property whose instalments have started already. We wish to get this property registered on HUF's name. HUF's bank account is not yet operational.
1. Can we continue paying the instalments from personal accounts and get it registered to HUF without paying from HUF's bank account? 2. Can we transfer the funds to HUF first before making the payment to builder from HUF's bank account? 3. If it has to be from HUF account only, can we do the remaining payments from HUF's account once operational or it has to be 100% paid from HUF's account only?
30 March 2023
1. Better not. 2. Yes, advisable. 3. Yes, pay as much as soon as it is operational. Finally, with adjustment of loans from members total amount should reflect in HUF BS.
31 March 2023
1. Yes, you can continue paying the instalments from your personal accounts and get the property registered on the name of HUF. However, it is advisable to have proper documentation and evidence of such payments made by you from your personal account to the builder for the purchase of the property. 2. Yes, you can transfer the funds to HUF before making the payment to the builder from HUF's bank account. It is a common practice to pool the funds and then make the payment. However, it is important to ensure that the transfer of funds is properly documented, and the HUF account is created before making the payment. 3. As per the current regulations, there is no requirement to make the entire payment from the HUF account only. However, it is advisable to make the payments from the HUF account once it is operational to avoid any complications in the future. Additionally, having a separate bank account for HUF will help you to keep the HUF's finances and transactions separate from your personal finances.
01 April 2023
Thank You Dhiraj and Sanat Sir. One follow-up on point-3. While taking the loan from Karta do we have to record it in some manner or just online transactions are enough as proof? Is it fine to keep that loan with 0% interest and no time bound ?
CAclubindia
