Tax on Amount transferred in HUF Account

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This query is : Resolved

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You're looking to transfer your deceased father's PPF account funds, where you are the nominee, into your HUF savings account and subsequently make a fixed deposit. It's important to understand that if you don't formally dissolve your father's HUF (if one existed) and distribute the assets, it could lead to tax complications in your HUF's tax filings. If your father did not have an HUF, the process might be simpler, but seeking professional advice is recommended.

Mitesh

Mitesh (Querist)

20 October 2026 My father has expired. I am nominee in his PPF account. I want to transfer this amount to my HUF savings account immediately when it is credited to my account. I shall do fixed deposit in HUF name. What is process to do so? Will there any tax complication in future?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

21 October 2026 If you wish to close your father's HUF, make dissolution deed and divide the property among the coparceners. Otherwise it will be taxable in your HUF file.

Mitesh

Mitesh (Querist)

22 October 2026 My father did ot have HUF account.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

23 October 2026 PPF Receipt: Tax-free under Section 10(11).

Transfer to HUF & FD: Treating personal/inherited nominee funds as HUF capital means subsequent interest income may face clubbing implications under Section 64, taxing it in your individual hands.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

23 October 2026 I differ on its future taxability, as it is ancestral asset transferred to son's HUF account.

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