I've just formed an HUF and a bank account in its name. Can I move 50lakh from my account savings account and make investment in the name of HUF? Would there be any tax implications for the HUF from this 50lakh transfer?
Menu
HUF tax implications - investment
Replies (7)
Quick Summary
Treat it as interest free loan by you to huf. No tax implications.
I see. Is it OK to give an interest free loan or do I have to charge some interest to avoid any complications in future?
Yes you can charge some interest. That would be really ideal and good defence. May be even 6%
I don't want to charge interest unless i have to. I'm doing this to save tax and if it comes back I'll have to pay 30% tax.
If i have to do it, can I give a deferred interest loan i.e get interest in 20 years?
Interest free loan is completely ok.
If u give interest free loan but HUF earn income therefrom it may be questioned as diversion of income
Under which section, can they add notional interest income ? It is very well possible to answer such question. Not to worry.
Recent Topics :
- Extension of Due Date of AY 2026-27
- FAST DS 2026
- Does AIS GST Purchase aggregate GSTR-2B expenses?
- Form 26A - System has encountered some technical p
- Tool to convert GST invoice PDFs into Excel —
- Revised or rectification or leave it?
- Private limited tax audit
- LTCG - SEC54
- Foreign remittance from our client for Co Working
- UDIN generation
Related Topics :
CAclubindia
