How do you earn income from HUF?

Who is eligible for a car loan? A salaried individual, self-employed whether in business or profession are eligible to apply. One can even apply on the name of the HUF, firm, company, etc. to avail of the depreciation (a deductible expense) benefit, under the Income-tax Act.Aug 11, 2017

Once the trade licence is obtained, the other formalities like opening of the account can be done and then the business as usual can be carried on. A Proprietorship concern is not governed by any specific law as such and therefore, there is no bar on HUF becoming a Proprietor of any concern or firm.

HUF is taxed separately from its members. A Hindu family can come together and form a HUF. Buddhists, Jains, and Sikhs can also form a HUF. HUF has its own PAN and files tax returns independent of its members.Aug 26, 2021

A Hindu Undivided Family (HUF) is known as a Joint Hindu Family under the Hindu Law. It comprises all persons lineally descended from a common ancestor and living under a common roof and joint in estate, food and worship.Sep 1, 2020

After marriage, a daughter will cease to be a member of her parental HUF, but will continue to be a coparcener. Thus, she is entitled to ask for partition of the HUF property, as well as to become the Karta of the HUF, in case she happens to be eldest coparcener of her father's HUF.Mar 5, 2021

One the death of a karta, the next senior most member automatically becomes the new karta of the HUF but at times, statutory authorities may require a declaration from the members forming part of the HUF declaring the eldest coparcener as the new karta of the HUF.Apr 11, 2017

Can a salaried person open HUF account? Yes. Salaried Individuals can open a HUF account as soon as he is married. However to enjoy the Tax Deductions he should have a child.Mar 6, 2019

Creating a HUF Deed is not mandatory and PAN Card and Bank Account can be opened without HUF as well but it's always better to have a written document in place.

Just like other individuals, even HUF members are liable to pay taxes every year. If the turn over of the business of a HUF member exceeds over Rs. 25 lakhs or Rs. 1 crore, s/he needs to perform tax audit under the guidance of a certified Chartered Accountant as mentioned in the Section 44AB of the Income Tax Act.Nov 18, 2020

Expenses on fooding of the family. Expenses on education including higher education of the family members. Expenses on Electricity bill. Expenses on Motorcar.

The remuneration received by Karta as representative of HUF cannot be treated as income of the HUF. Remuneration will be income of HUF only when there is direct nexus between family funds and remuneration paid.Mar 13, 2020

To create HUF, at least two coparceners are required either son or daughter. Therefore only husband and wife cannot create an HUF, unless the property has been received by a coparcener on partition or otherwise. However, there is no impediment to starting a new HUF by gift from family members.Jul 16, 2020

Yes you can create a HUF and transfer this property to HUF account. HUF is a separate entity for the purpose of assessment under the Act. Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.

Yes, you can It may further be noted that the HUF will be liable to pay tax on such rental income and will also get the standard deduction benefit. It is advised that the HUF should charge prevailing market rent so as to avoid any litigation by the tax department.Jun 12, 2017

Thus, it is possible a person can be Karta in two HUF. Till your father's HUF is partioned you can continue to be be the karta of the said HUF, if you are the eldest son otherwise the eldest son shall be the karta. So you can be karta for 2 HUFs.