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Why HUF?

12 April 2009

I have been wondering what is the basic purpose behind forming a HUF? What are tax benefits one get by forming a HUF? What is the procedure of forming it?

I have heard that it is a way to convert ur black money into white money, is it true?

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5 Replies

CA. Megha Topiwala (Job) (1534 Points)
Replied 12 April 2009

Huf is d form of business which prevails since long years ago.... this is called family business.... ofcourse presently this has become a source of converting black money 2 white.... but u can do a very gud tax planning with d formation of huf....

CA RAHUL GOYAL (CA) (97 Points)
Replied 12 April 2009

Thanks for this megha but can u highlight more on ways of tax planning by forming HUF and also the procedure for forming it.

parthasarathy (Practising, C.A) (188 Points)
Replied 12 April 2009

hello..... an individual can form an HUF only if he has a son and the status can be created with an amount the individual got due to partition of his joint family or our of amount or property he received by will from his ancestors. (other than father if he the only son).

an individual claimes two basic exemptions if he files both individual and huf returns. it is like an individual splits his status into two and benefits twice as such ..... formally huf is formed when you get a property or amount due to full partition of your joint family..... or if you are the only son...... and you also have a son.... you can get a amount gifted from your grand parents or any elder of your family (by the name of will) and that amount can form the nucleus for the formation of huf.......

moeen ali sayyed (Articleship) (32 Points)
Replied 28 December 2011

What is the procedure for forming an HUF? Where to apply for it or how to form HUF?

john lee (teacher) (21 Points)
Replied 28 December 2011

hi,

This alex31.to get the ans of your q you must contact to your friend .to get more information related this subject you may visit on bellow link .which help you to explain the subject.

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