Establishing a Hindu Undivided Family (HUF) is a way to save money on taxes by setting up a distinct legal entity for your family. With a HUF, income from sources like rent, interest, or investments can be divided between the individual and the HUF, lowering the overall tax burden. Moreover, HUFs are eligible for deductions under provisions such as 80C, which further enhances tax efficiency for the entire family.
@Surbhi_Pal @AkashJhaveri i read somewhere that HUF needs at least 2 coparceners (3 members including karta) for anything to be taxable on HUF. If there is only 1 coparcener (for example husband and wife without children), then tax liability is still with the Karta only. Is this true?
And another question - what is the easiest way to add funds to HUF account?
Hi team,
Can a spouse dissolve HUF by mailing to IT team?
Hello @Patl_Pel ,
Any member of the HUF can apply for dissolution after making sure that all members agree to the same. HUF dissolution can not take place by sending an email to the IT department.
After the members have agreed, a partition deed needs to be prepared and the assets need to be divided physically either by selling or transferring.