Income Tax for Hindu Undivided Family (HUF)

Will any clubbing provision apply in case of transfer of asset to Hindu Undivided Family (HUF) by its member?

Hi @Dixita

As per section 64(2)​, when an individual, being a member of HUF, transfers his property to the HUF otherwise than for adequate consideration or converts his property into the property belonging to the HUF, then it will attract the provisions of clubbing. Entire income from such property will be clubbed with the income of transferor.

I recently got married and wanted to form the HUF. Since we do not have any child.
Can we take gift as 50k of initial corpus to form a HUF? Will, this 50k have to come from the father only or any relative/friend/Mother can give this?
Also will this implies any tax implication? (I believe no)

What will happen eg. If I take 50k from a friend/Mother and fund the HUF initial corpus.
Then took another 2Lac from Mother since 2.5Lac is the tax exemption limit. (maybe 1.5Lac invested to 80c)
Will it be considered or anything related to clubbing needs to be considered?

Thanks in advance for the help.

Hi @smarty_pokemon, we recommend that you take the amount as a "gift’ into your own account and then introduce it as a capital into the HUF. You can read more about “clubbing of income” in the artcle mentioned below. Always happy to help. Let me know if you have any other query. :blush: