HUF, a Way to Save Income Tax #HUF #TAX #INDIA #GST

HUF means hindu undivided family is a separate entity for income tax law. Its income is taxable at the same rate as individual and also avail all the available deductions and exemptions that applicable to individual.

In other words, it can be used to reduce tax outflow through the division of income between multiple assessable units. 

Some of the major advantages are listed below :

Income of up to Rs 2,50,000/- earned by the HUF is tax-free as per the tax slabs for the Assessment Year 2022-23.

Deductions under Section 80C, 80D, 80G can be claimed by the HUF.

HUF can also claim deduction on interest paid on house property of up to Rs. 2,00,000/- in a year. However, the house property must be in the name of the HUF or jointly in the name of the HUF and one of its members. The principal repayments can be claimed as deduction under Section 80C. 

Since the income after tax of the HUF is the family’s income, the Karta can use it for family expenses and can also distribute it among the members without any further tax liability

Also as  HUF is consider seperate entity so you can open separate Demat account(more account for applying IPO😅) and LTCG exemptions will be applicable to  HUF also.



Comments

Post a Comment

Popular posts from this blog

Registration Under GST

Image
  When registration required under GST?    }   Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States*, from where he makes a taxable supply of goods or services or both, if his aggregate turnover * in a financial year exceeds 40 lakh rupees for Goods and 20 lakh for Services        *special category states limit is 20 lakh for goods and 10 lakh for services }   A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. }   Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the p
Read more

GST provisions for selling through online marketplace like #amazon #flipkart etc.

  GST Registration Compulsory!!! https://www.amazon.in/gp/goldbox?&linkCode=ll2&tag=10e3928-21&linkId=4b2917bf40081515c5289ba80b4fe0f0&language=en_IN&ref_=as_li_ss_tl GST registration is compulsory for selling goods online. As such you will not able to make business account on e-commerce portal if you don’t have GST number. GST registration is compulsory even if you are going to sale exempt product or your turnover is below registration limit requirement. (Read when GST registration required in other cases- https://taxunlock.blogspot.com/2022/02/registration-under-gst.html   In short, all product you will be required to charged GST as per applicable rate. Tax deduction from your consideration other than operator charges Supply of goods through E-Commerce operator would attract TCS provisions if consideration is collected by Operator and then remittance made to you.   E-commerce operators would collect 1%  of Net taxable value invoice wise and the same
Read more

HUF Income Tax: Understanding the Basics and Benefits for Tax Planning in India

  Hindu Undivided Family (HUF) is a unique legal entity recognized under Indian tax laws that allows families to pool their income and enjoy certain tax benefits. HUFs offer tax planning opportunities for individuals looking to optimize their tax liabilities while maintaining family wealth and financial stability. In this blog, we will delve into the concept of HUF income tax, its benefits, and how it can be leveraged for effective tax planning. What is an HUF? An HUF is a legal entity formed under Hindu Law that comprises members of a Hindu family who are lineal descendants of a common ancestor. It allows pooling of income and assets for the benefit of the family. From a taxation perspective, an HUF is treated as a separate entity and enjoys certain tax benefits and exemptions. Formation of an HUF: To form an HUF, a valid deed or agreement known as a "HUF deed" needs to be executed. The HUF deed outlines the names of the members, their relationship, and the property/assets c
Read more