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Clubbing of income

akanksha (CA Final Student) (325 Points)

04 June 2014

Hello

Please suggest a way through tax planning so that a residential unit is transferred to HUF by karta as gift and rental income is not clubbed with income of Karta

Thanks

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4 Replies

akanksha (CA Final Student) (325 Points)
Replied 04 June 2014

please suggest.................

siddharth (none) (304 Points)
Replied 04 June 2014

Although it is possible for a member of the HUF to transfer his or her individual assets to the HUF, such a transfer isn’t beneficial from the tax point of view. This is because there is no transfer of the tax liability on the income from such assets. The income would continue to be taxed in the hands of the individual who has transferred the assets, due to the tax provisions governing the clubbing of such income with the income of the transferor.