Sumit A. Raval (Student) (190 Points)
24 December 2009Hi to all...
My question is that my father is government employee & in our family there is not business since long.
Sir I would like to know that if I start HUF or create a trust for tax planning? which is the better option & which one is open for my father to save tax....
Nitesh Chordia
(Business)
(231 Points)
Replied 24 December 2009
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
Sumit A. Raval
(Student)
(190 Points)
Replied 24 December 2009
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????
manjari
(Article )
(56 Points)
Replied 25 December 2009
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
Nilay Shah
(Chartered Accountants)
(74 Points)
Replied 26 December 2009
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.
Sumit A. Raval
(Student)
(190 Points)
Replied 28 December 2009
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....
CA Anand Oberoi
(Chartered Accountant)
(296 Points)
Replied 29 December 2009
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.
ANAND BABU
(CONSULTANT)
(22 Points)
Replied 07 February 2011
any bode tell me the income tax practitioner procedure
anand babu
Live class on PF & ESI Enrollment & Returns Filing(with recording)
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