44 AE for HUF and Individual

Tax planning 1000 views 3 replies

Jaspreet Singh

Director

30 Points Joined October 2008

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.

Replies (3)

Guest

Hi Jaspreet,

Since you are purchasing 8 vehicles in the name of HUF it will be eligible for sec 44AE.

U/s 64(2), your individual income will not be clubbed with the HUF

chaitanya cherukuri

Articled Student

241 Points Joined June 2009

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.