how a huf is formed and how we(HINDU FAMILY) can take advantage(TAX) of this. can we transfer assets already under the members joint name and can the tax benefits be transfered to the individuals say property purchased with a loan on individuals?
Ans: A male member can form a HUF, he being the Karta once he is married. You can straight away open a bank account by filing a statement of declaration on a bond paper. Your auditor will be able to help u with the procedure and drafting the declaration.
Once a HUF is formed it is identified as a separate entity (like a individual) hence benefits in many ways can be taken from taxation point of view. Opening a PPF account in the name of HUF has been stopped now by the Govt.
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