Can my father give loan to his huf - other HUF queries

Drona (Professional - IT) (71 Points)

12 March 2013  

My father has setup his HUF with my mom and my name in it.

a) Can he setup HUF with his own funds and transfer Rs. 2 Lakhs as initial corpus? Is there any limit of own funds transfer to setup HUF?

b) Can he transfer the Shares in his personal name as Loan to his own HUF and get interest back by deed with his HUF?

c) Can he transfer money to his own HUF as loan to help HUF build corpus so he can buy property under his own HUF and not in his own name?

d) Can he transfer shares of today's market value of Rs. 10 Lakhs to his HUF via deed only for consideration of Rs. 5000 that he gets from HUF in his own name. What about capital gain? If HUF is putting these shares in HUF DEMAT account and not selling them, will there by any notional capital gain to be applied as per Income Tax?

e) Can he gift shares of Rs. 10 Lakhs to his Son's HUF ?  Will Son't HUF have to pay anything or can they straight go into his son's HUF DEMAT? What about income from dividend or future selling of these shares by son?

f) Can HUF take ownership in overseas firm?

g) Can HUF become partner in multiple companies?
 

Drona