Hi,
I have query regarding formation of HUF and how to fund the HUF so as to divide my tax burden.
My Family :
-> Me (earning 6 lacs/annum)
-> Wife (earning 20 lacs/annum). She has a sole properitory business
-> Daughter (she is just 1 year right now).
I help my wife in her business related to designing. She works from home and her clients are all over US. She has 100% export oriented income. I myself work in an IT company.
Now the question is if I form an HUF, how can I fund HUF on regular basis from my wife's business?. I was planning if she can transfer 6 lacs to HUF, then our tax burden will reduce significantly. How can I do it? Can I show it as receiving as Consulting fees but money deposited in HUF account?
If above answer is no, can I receive foreign income in HUF directly, will that work ?
Looking for your help.
Best Regards,
Mohan.
CAclubindia
