RAMESH SINGH 01 April 2020
I am Karta of HUF. My individual PPF account matures now with around 25 Lacs. I want to transfer full 25 Lacs to my HUF to save tax as I am in 30% tax slab.
My question is
1-it right way to do so?
2-Tax implications on HUF
3-HUF invest full amount in shares then income earnings belongs to HUF or clubbing provision applicable as it solely do to save tax.
4-Is this have to be disclose any where and is there any wealth tax ?
Please suggest with your answer .
Thanks a lot.
Mandakulathur Ananthanarayanan 07 April 2020
1. Yes. Gift by HUF is not prohibited by any laws.
2. But it is to be noted that there will not be any tax savings becz of this exercise since the income would again be clubbed in the hands of Marta
3. Income from invested shares will be clubbed. But where that income is invested again, then income from accreted assets will not be clubbed.
4. No wealth tax. No income tax on gift of money because Karta and HUF are relatives.