How to save taxes using HUF?

Income Tax Tax Savings & Deductions
21

Hey @Vaibhav_Gupta,

For the gift deed, you’ll have to get in touch with a lawyer. Moreover, yes, the HUF needs to report the gift income in the ITR. It needs to be reported under the schedule EI (exempt income).

Hope this helps!

22

If a husband and wife form a HUF and they have no children, will the income received under the HUF be clubbed with Karta, or will it be taxed only to the HUF?

23

Hey @thethinker,

Income received by the HUF is taxable in the hands of HUF itself.

However, if an individual transfers his property to HUF without adequate consideration or converts such property into HUF’s property, then income from such property shall be clubbed in the hands of the individual.

Hope this clarifies.

1 Like
24

I work in IT and receive professional income; my wife’s case is similar. We are both planning to opt for 44ADA. We also have a HUF account. Can we also receive some part of income under HUF name and claim 44ADA in HUF to save more tax?

We want to split part of our income in HUF and invoices can also be raised under HUF name if required. Is this kind of setup allowed?

25

Hi @thethinker

44ADA is applicable only in case of Individuals & Partnership Firms (other than LLP). Thus, you cannot claim 44ADA in HUF.

2 Likes
26

Hey @thethinker,

An HUF can’t have professional income and hence cannot report income under section 44ada as well.

1 Like
27

@Surbhi_Pal A HUF can be formed without a child but Can a HUF get tax benefits without any child? I read in some other articles that 2 co-parsners are required to get tax benefits for HUF.

Please help!

1 Like
28

Hi @Quant_Cr,

An HUF can be formed with just a husband and wife. Moreover, the HUF can avail the tax benefits as well.

29

Thanks for the quick response :pray:

Will UCC implementation affect HUF? Like in Uttarakhand?

30

Thanks @Surbhi_Pal for the quick response :pray:

Will UCC implementation affect HUF? Like in Uttarakhand it was implemented so will HUF be defunct there?

31

Hi

Recently setup HUF with my wife and 2 kids. Myself & My wife loaned money to HUF and purchased Bonds, invested in FD etc in HUF account
I am planning to pay kids school fees from the interest earned from Bonds & FDs. Is that permitted?

32

Hi,

Me and my wife are salaried person having No rental income, doing Share marketing?
Can we save tax by forming HUF?
How to pool money to HUF?
Will you able to help? and what will be your fees

33

Hi @nayakd1

I was going through you query,

I have one point or concern over that, which is
"After marriage, a daughter will cease to be a member of her parental HUF but will continue to be a coparcener.

As a result, she is entitled to ask for partition of the HUF property and become the Karta of the HUF in case she happens to be eldest coparcener of her father’s HUF.

Hope this helps,

34

Thanks Mr. Raman for your concise explanation.

35

Sure Mr. raman. I will connect with you when need arises.

1 Like
36

Save taxes using a Hindu Undivided Family (HUF) by treating it as a separate tax entity, investing HUF funds, distributing income-generating assets, and claiming deductions under sections 80C and 80D.

37

Hi @jitendra_rajput,

You can opt for the below MEET plan wherein one of the tax experts from team will connect with you and advise.

Ask an Expert

38

Yes, the funds from HUF can be used. However, you can’t claim these as expenses.

39

Hi @Surbhi_Pal

Can I use HUF PAN for HRA purpose ?
In that case, do i need to make financial transaction from my account to HUF account ?
Also , does income clubbing happen in that case or will HUF as seperate entity will have that as taxable income

40

Hi Team
Did you get a chance to check above query