Provision of clubbing

This query is : Resolved

GAURAV VERMA (Querist)
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08 July 2012 If Karta of HUF made FDR in the name of HUF out of his personal fund than what will the taxability provision of the interest on FDR.
whether these FDR can be gifted to HUF or make as capital contribution

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 July 2012 1. If the FDR is made out of personal funds of the Karta, the interest shall be clubbed in the hands of the Karta.

2. If the FDR is gifted to the HUF or is introduced as capital contribution, still clubbing provisions shall apply and the interest shall be included in the income of the Karta.

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