I personally own 8 vehicles and am getting the exemption under section 44 AE. I also have 6 vehicles in my wife's name. Now I am planning to expand and purchase 8 more vehicles, as my limit for Section 44 AE is of 10 vehciles I am planning to create a HUF in my name and purchase these new vehicles in that. Will the HUF be eligible for section 44 AE and will my individual income be clubbed with HUF.
Any answers regading this are welcome.
hi jaspreet, you cannot create HUF on your own. there are some conditions which needs to be complied with. i think, one of those conditions are having an ancestral property on which all family members have partition right. so you cannot buy property in HUF name. there is also a provision in income tax act which stipulates that if any property is trsfered to HUF without consideration, income from that property will clubbed in the transferer income. you better not buy a vehicle to avoid revocation of sec.44ae.
yes i agree with chaithanya
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