Huf account related query

KEY POINTS IN CREATION OF HUF

You can Create HUF only after getting married.
You can not transfer your own assets/money into HUF.
HUF’s are allowed to open Savings account although its a non Individual entity.
An HUF can recieve any amount in gift from bigger HUF’s (HUF of Father, HUF of Grandfather)
Any gifts received by the members of HUF (birthday, marriage, etc.) can be treated as assets of HUF.
If you have ancestral property and earning some income from this property, then it is better to transfer this asset to HUF and savetax up to exemption limit applicable to individual.
Existence of property or multiple members is not a pre-requisite to create HUF.
You can transfer the money received on sale of ancestral property /assets into your HUF.
The income from property of HUF can be further invested in instruments such as shares, mutual funds, etc. and will be assessed under HUF.
HUF enjoys tax exemption of Rs. 1 lakh under Section 80C in respect of LIC premium, NSC, ELSS, 5 year bank deposits etc.
Stranger can gift HUF but nor more than 50000 rupees as per section 56 ofincome tax act.
HUF income and individual income are different and to be taxed differently.
In HUF there could be all the females’ members also when the husband dies and she has no sons.
HUF also enjoys wealth tax exemptions available to individuals.

Recent amendments in HUF rules(HINDU SUCESSION ACT in 2005)

The daughter could also be a Coparcener like the sons of the HUF.
Daughter also continues to be a Coparcener after her marriage of that family whether she also will be a member of HUF of her husband.
The degree of the Coparcener limited to four degree(Great Grandson) and not all the members of the family are Coparcener.
For creating the HUF one need to get married, there is no need to have child or children for creating the HUF.
The female could also be a KARTA as the amended when the father unfortunately dies and she has no brother. In that condition the daughter or the mother can be the KARTA.
in HUF there could be all the females’ members also when the husband dies and she has no sons.
The HUF can’t be a partner of the firm as the HUF is not a person whereas the KARTA of HUF can be a partner of the firm.
HUF can pay remuneration to the KARTA of family for the interest and expenditure to run the family business.