HUF
Querist :
Anonymous
(Querist) 07 February 2010
This query is : Resolved
Hi, Can anybody please advise on the following:
1. as to whether a family comprising of husband(self), wife & 2 minor daughters be considered as an HUF?
2. whether Declartion regarding corpus & constitution of HUF by Karta need to be on stamp paper & whether the same needs to attached while making the PAN application?
3. Whether the income earned by HUF as dividend & capital gains in shares transaction be considered as HUF income or income in the hands of the karta if he is offering services in his individual capacity as a portfolio manager?
A V Vishal
(Expert) 07 February 2010
1. as to whether a family comprising of husband(self), wife & 2 minor daughters be considered as an HUF?
Yes
2. whether Declartion regarding corpus & constitution of HUF by Karta need to be on stamp paper & whether the same needs to attached while making the PAN application?
Yes, a HUF needs to be declared on a stamp paper in Maharashtra and there is no necessity of attaching the copy while applying for Pan card.
Whether the income earned by HUF as dividend & capital gains in shares transaction be considered as HUF income or income in the hands of the karta if he is offering services in his individual capacity as a portfolio manager
The HUF is taxable as separate person under income tax hence one can save tax from basic exemption of Rs. 1.6 lakh. HUF will also gain from the tax slab structure of computing income tax.
Apart from basic exemption of Rs. 1.5 lakh, section 80C deduction up to Rs.1 lakh is also available.
For example, if you are in 30% tax bracket, then approx tax saving by creating an HUF will be as follows:
Basic exemption up to Rs. 1,60,000 = nil
Rs. 1,60,000-3,00,000 @10% = Rs. 14,000
Rs. 3,00,000-5,00,000 @20% = Rs. 40,000
Rs. 5,00,000 > above @30%
80C deductions Rs. 1,00,000
Querist :
Anonymous
(Querist) 09 February 2010
Thank you all for your valuable reply.
