How to save taxes using HUF?

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!

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?

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.