Hindu undivided family
premalgor
(Querist) 04 March 2008
This query is : Resolved
If i were to form HUF
than what are the benefits from Law point of view
as agst forming a company
Aniruddha.P.Pawse
(Expert) 05 March 2008
Hi Premalgor,
For forming a company you need to go through various complicated legal formalities. Even after forming a company you will have to regulate the same according to the provisions of company law. in huf the karta is whole and sole.
It is also simple to form an HUF.
Rgds,
SANJAY DIXIT
(Expert) 25 July 2008
HUF is a good tax-cutter because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate person. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. It also enjoys the exemption, deducrion & rebate under various Sections of IT Act just like an individual.
