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Fund Transfer to HUF

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Naresh Trivedi

19 Points Posted on 21 August 2022

If a big amount say Rs.Fourty Lakhs are transferred to HUF from individual Bank A/c by KARTA and invested in Mutul Funds in HUF due to lack of knowledge. ITR of both Individul and HUF filled separately in A.Y. 2022-23 Advice what will Happen ? and what should be done ?

Can Member of HUF allowed to make investment in HUF for its benefit ?

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Quick Summary

This discussion addresses the tax implications of transferring a large sum (e.g., Rs. 40 Lakhs) from an individual's bank account to a Hindu Undivided Family (HUF) by the Karta, especially when invested in mutual funds due to a lack of knowledge. It clarifies that if treated as a gift from a specified relative (member of HUF to HUF), it's generally not taxable, but Section 64(2) regarding clubbing of income must be adhered to. If treated as a loan, there are no immediate tax implications.