POSTED BY February 19, 2013 12:56 pm COMMENTS (3)
ONWe are a family of 5 members. My parents are working. My wife and unmarried sister are not working. I am planning to open two HUF account, one on my father’s name and the other one on my name as a Karta. The situation is that, my mother need to save around 15000 towards her Income Tax, which will otherwise be deduced. Can she gift this much amount to my HUF and save the amount from being taxable? Kindly suggest me.
Thanking You,
Amit Kumar
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Dear Amit, before jumping in, please read a lot about HUF to avoid any future problems.
Thanks
Ashal
Thanks a lot for your reply. I have just started taking my personal finances seriously and have a little knowledge about HUF. I really appreciate your time, It helped me a lot.
Amit
Dear Amit, a plain answer is no. Your Mother can not save her tax liability by merely gifting her capital to you or your HUF or anybody.
As you are starting (Here I’m using word starting in reference of financial transactions only, actually your both HUFs are in exostence since the time of 2 marriages) 2 HUFs from day one, please consult a CA or a Tax professional to avoid any future conflicts or problems. I’m not sure, how much info you do have regarding HUF.
Thanks
Ashal