Questions regarding operating HUFs

POSTED BY Anshul Gupta ON July 21, 2013 12:32 am ONE COMMENT

I am planning to create a HUF with only two members. There is no ancestral property. I have few questions regarding this –

1. Can a HUF receive gift through remittances from abroad ? Will the same rules apply as getting a gift from India based stranger ?

2. Do I need to register a gift deed for the above purpose ?

3. If the income of HUF is transferred to my savings account, will it be treated as gift and clubbed to my income ?

4. As a karta, is there any limit to take out cash from HUF assets and use as family expenses?

One reply on this article “Questions regarding operating HUFs”

  1. Ashal Jauhari says:
    July 27, 2013 at 10:30 am

    Dear Anshul, I’m trying to answer your queries.

    1. Can a HUF receive gift through remittances from abroad ? Will the same rules apply as getting a gift from India based stranger ?
    Yes, same rules ‘ll apply.

    2. Do I need to register a gift deed for the above purpose ?
    NO.

    3. If the income of HUF is transferred to my savings account, will it be treated as gift and clubbed to my income ?
    It’s not your income & unless you are not receiving as gift, it’s not a gift.

    4. As a karta, is there any limit to take out cash from HUF assets and use as family expenses?
    No, there is no such limit.

    thanks

    Ashal

    Reply

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