About the Income from Other Sources category

Income Tax Income from Other Sources
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Conversations around Income Tax on interest income, pension, gift and other sources

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I created a HUF account conissting of husband (me ), my wife and my son.

I and my wife keep transferring my monthly credited salary amount post TDS to HUF Bank account., the interest earned on these accumulated money in HUF S/B or FD interest will be purely HUFs earning and not individuals earnings? am I right?

is there a limit to total amount inflow in HUF savings bank account? I hope not.

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@Laxmi_Navlani , can you help here

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Hi Uday,
There are 2 ways here.

  1. for the 1st year, considered the interested recieved in HUF as similar to interest recieved by you from your bank and include that in your own income tax ( clubbing provision).
    from 2nd year, any interest coming from this will be HUF’s own income. you will have to do this every year same. certain amount will be under yours and certain under HUF own income.
    for e.g. if u put 1 lakh and interest received is 10K for the 1st year this 10K will be added to your tax liability and HUF will be 0. next year you also put 1 lakh of your own funds and 10K of HUF funds, u will get 11K. out of which 10K will be yours and 1K will be HUF income

  2. option 2 will be to show the loan from your account to HUF. now here loan interest component will come to your account while the HUF will be profit ( savings interest - loan interest). the only question is that if one need to show the loan interest YoY or not

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Please clarify. I have deposited Rs 15 Lakhs my minor daughter name ( 3 deposits in the same bank) and the interest earned on annual basis as taken into my wife’s account for ITR Filling. My wife’s promptly taking the interest income ( income from other sources) and filing returns. Is this problem as per Income Tax Section 64 or am i in violation of such IT act.