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HUF pan card

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Old 9th June 2011, 11:53 PM
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Default HUF pan card

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?


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Old 10th June 2011, 08:48 AM
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Default Re: HUF pan card

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Originally Posted by bajajdipesh View Post
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?
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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Old 10th June 2011, 12:21 PM
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Default Re: HUF pan card

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Originally Posted by bajajdipesh View Post
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?
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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Old 10th June 2011, 01:04 PM
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Default Re: HUF pan card

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Originally Posted by vijayvaliya View Post
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.
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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Old 10th June 2011, 01:30 PM
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Default Re: HUF pan card

Quote:
Originally Posted by bajajdipesh View Post
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?
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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Old 10th June 2011, 09:10 PM
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Default Re: HUF pan card

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?
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Old 13th June 2011, 01:26 PM
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Default Re: HUF pan card

Quote:
Originally Posted by bajajdipesh View Post
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?
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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Old 10th October 2011, 07:48 PM
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Default Re: HUF pan card

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