Sonia (Auditor) (112 Points)
19 October 20121) I have come across a few forms for formation of HUF, Where do you actually submit these forms?
2) In my Clients family, he has Father, wife and his 2 yrs old daughter. Can he along with wife and daughter form HUF? Is it necessary to include his father??
3) They have bought a house (husband and wife) recently, it is regd in their joint name. Can it be shown as HUF property? Can the rent income on this property be taxable in hands of HUF?
Ankit
(CA, CS)
(3064 Points)
Replied 19 October 2012
Dear Sonia,
1. you dont have to submit any forms, you just have to apply for a PAN card in the name of the HUF with the name of the husband as the Karta and open a bank account in the name of the HUF
2. yes...including the name of the husband is necessary saince there has to be one male member.
3. No....according to me, this is not possible since, HUF is a separate entity
Ankit
Sonia
(Auditor)
(112 Points)
Replied 19 October 2012
Thanks Ankit for your response, regarding my query on Pt.2, I wanted to know if my client needs to include Father as part of HUF. Can Son with his wife and daughter form HUF? He does not want to involve his Father into it?
Ankit
(CA, CS)
(3064 Points)
Replied 19 October 2012
yes...he can form an HUF with himself his wife and son as the members...in fact, legally speaking his father does not form a part of his HUF...
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 19 October 2012
husband,wife and daughte are enough to form HUF..inclusion of father is not mandatory..
Sonia
(Auditor)
(112 Points)
Replied 19 October 2012
Thanks Ankit and Pooja. Appreciate your response.
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 19 October 2012
i have a different view point regarding point no.3
according to me joint property of husband and wife can be transferred to huf ..for this registration of proprerty has to be done in the name of HUf.
this is my personal viewpoint
Ankit
(CA, CS)
(3064 Points)
Replied 19 October 2012
yes sure this can be done...but then to recognise the rental income in the name of the HUF, the prop has to be trfd...
and, in my opinion, the transfer charges and the stamp suty payable may be much higher than the amount of tax that can be saved
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 19 October 2012
well the rent or stamp duty cannot be the sole criteria to judge whether the property sud be registered with HUF or not..there are many other long term benefits which are also to be considered.
morever income from house property has to be computed each year whereas stamp duty is one time expense
CAclubindia
