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. 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

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