HUF pan card

Discussion in 'Taxation Matters' started by bajajdipesh, Jun 9, 2011.

  1. bajajdipesh

    bajajdipesh Active Member

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    Hi,

    Can anyone tell me what is the use of HUF pan card? Someone told me that we can save tax if we invest thru HUF pan card instead of personal pan card. If thats the case can nyone tell me how one can do that?
     
  2. rkkarnani

    rkkarnani Well-Known Member

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    You have one extra file to take the "initial" level of Income exempted from Tax!! You have an extra file in which you can get the Savings Exemptions!!
     
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  3. vijayvaliya

    vijayvaliya Active Member

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    Treatment of Income, under Income tax act is different for Individuals and HUFs. In certain cases you have some advantages of being categorised as HUF. Consult your Chartered Accountant on where you can get benefits.
     
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  4. rh6996

    rh6996 Well-Known Member

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    HUF is an "extra" IT File you get, its not about categorising someone as an individual or HUF!! The Karta of HUF has to be an individual.
    If you have enough savings that exceed the Personal file limit, do create a HUF file. Only a married person can have a HUF file!!
     
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  5. mmca2006

    mmca2006 Active Member

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    I think you want to know what is the use of HUF. i.e without HUF there is no use of HUF pan card.
    First you have to creat a HUF , then apply for it's pan card and thereafter go for Income tax return filling for such HUF. HUF is separate legal entity .
    Suppose mr. X created a HUF with his family and he became the KARTA of such HUF.He first should obtain PAN no . of his HUF, there after he can file separate income tax return for such HUF. he can distribute his income between himself, his wife, his HUF etc.and may get exemption u/s incometax act in all cases and ultimately tax burden will be reduced much.
    It is a good tax planning avenue.Ask your local CA or IT consultant , it will reduce your tax burden.:)
     
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  6. bajajdipesh

    bajajdipesh Active Member

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    Hi Guys,

    Thanks a lot for the input. I already had HUF pan card but now dont know how can I avail the benefit from the same. I have following doubts regarding the same:

    1. If I want to invest thru HUF do I need to create one more bank account on HUF name?
    2. How to create the corpus for HUF? Can I transfer my money to the HUF account?
    3. How much tax benefit I can get?
    4. What are negative implication if there is any?
     

  7. mmca2006

    mmca2006 Active Member

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    sorry for late reply,
    yes you need to open a bank a/c for HUF using pancard of HUF and your voter I card as karta of HUF.You can transfer money to HUF a/c but it may attract clubbing provision under sec64(2). i.e, suppose you transferred rs. 30000/- to HUF Bank A/c without adequate consideration, then income generated using rs. 30000/- (suppose saving interest @4% i.e1200) will be added with your income and not of HUF but any income generated using Rs. 1200/- ( interest amount) will be considered income of HUF.
    You can avail tax benefit same as individual depending on tax saving investments relating to your HUF.
    According to my knowledge no negative impact except sec64(2) as stated above.:):)
     
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  8. Ritchie43BD

    Ritchie43BD New Member

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    Never be afraid to try something new. Remember, amateurs built the ark; professionals built the Titanic.
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