Regarding HUF or creating a trust

dear... creating huf wud be better for tax planning since in that case u'll get some benefits like rebates,deductions in name of huf and others individually also

and it is better not to tart a business then creating a trust because in that case whole of the profit u earn will be of trust and also there are many restrictions and rules to spend income derived from trust 

OK Thanks but tell me whether a  trust created for the purpose of benefiiting children & after making saving & earning, If the exp was paid from that income should it be allowed under Trust to claim exemption????

yeah in case of a trust u could get deduction for ur expenses related to trust but there vl be much legal formalities. n after considering all ur points i vl suggest u to have HUF only. coz u  n ur father both could get much benefits through HUF

HUF is much easier to create then creating a trust, moreover, u can do any business under HUF and claim expenses in it and build a capital  in it, in trust u will only be able to claim some of the expenses of trust.

Thanx Nilay Sir & Manjari...

But I would also like to ask u that, We dont have any business income & I m earning Stipand, My daddy earning salary income only, so it's posible for my daddy to create HUF now? & if yes than tell me the steps f creating it....

HUF should have its own business to carry on. you cannot show your father's salary or your stipend income as an income arising to HUF. if you try to gift some money to newly created HUF then any income arising to HUF on the basis of such money will be clubbed to your income.

so, its not a good idea to create  HUF in your case. but if you have any rental income from house property... it will be most benefecial to create HUF for such income.

any bode tell me the income tax practitioner procedure

anand babu