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Income tax applicability for HUF & Personal PAN

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P@ssw0rd

Consultant

23 Points Posted on 23 June 2020

Hi,

What would be the income tax applicability for HUF & Personal PAN in below case?

I have 50L FD in my personal savings account. I transferred same to HUF account (my-self KARTA) & opted for FD under HUF account.

Do my HUF account need to pay income tax on 50L & interest accrued on 50L over period of Financial year?
or just income tax on interest accrued on 50L FD?

Do my personal PAN need pay any tax on 50L transferred or any interest accrued on same?

In short, would like to know income tax applicability for Personal & HUF PAN in above case.

Regards

Replies (3)

Quick Summary

This discussion clarifies income tax applicability when funds are transferred from a personal savings account to a Hindu Undivided Family (HUF) account, specifically concerning Fixed Deposits (FDs). The consensus is that income generated from the FD, including interest, will be taxable under the individual's personal PAN due to Section 64 of the Income Tax Act, which clubs such income with the individual's personal income. Therefore, the HUF itself will not be liable for income tax on this interest; it's the individual who needs to declare and pay tax on it.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

14046 Points Posted on 23 June 2020

in this case section 64 would apply and accordingly income from FD of Rs 50 Lakhs will be taxable in the hands of the individual himself as the same is transferred to HUF account.