HUF: टैक्स बचाने का एक और तरीका

एचयूएफ (हिंदू अविभाजित परिवार) इनकम टैक्स में बचत करने का एक महत्वपूर्ण तरीका है क्योंकि इनकम टैक्स विभाग एचयूएफ को हमारी-आपकी तरह एक अलग इकाई के तौर पर देखता है। कैसे बनाया जाता है एचयूएफ 

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कैसे बनता है एचयूएफ

- हिंदू अविभाजित परिवार बनाने के लिए एचयूएफ के नाम एक बैंक खाता खुलवाना होता है। यह खाता परिवार के मुखिया (कर्ता) के नाम होता है, लेकिन उसके नाम के बाद एचयूएफ शब्द जुड़ा होता है। यह कर्ता के नाम होता है लेकिन इसमें थोड़ी तब्दीली संभव है। जैसे कर्ता दीपक गर्ग, दीपक गर्ग एंड संस एचयूएफ के नाम से बैंक खाता खुलवा सकता है।

- इसके बाद एचयूएफ पैन कार्ड के लिए आवेदन किया जाता है।

- पैन कार्ड भी कर्ता के नाम होता है, लेकिन उसके अंत में एचयूएफ शब्द जुड़ा होता है।

कौन है कर्ता

- इनकम टैक्स एक्ट के मुताबिक परिवार में पिता या वरिष्ठ पुरुष सदस्य ही एचयूएफ का कर्ता होगा। कर्ता की भूमिका परिवार के मैनेजर की होती है और एचयूएफ के सारे सदस्य इसके पार्टनर की तरह होते हैं।

- कर्ता के लिए परिवार के साथ एक ही छत के नीचे रहना जरूरी नहीं है। जरूरी यह है कि वह परिवार के सारे मामलों की देखभाल करता हो।

कुछ और शर्तें

- जो शख्स एचयूएफ बनाना चाहता है, उसका शादीशुदा होना जरूरी है। कुंवारे लोग एचयूएफ नहीं बना सकते। एचयूएफ पर इनकम टैक्स में फायदा लेने के लिए घर में बच्चे का होना जरूरी है। अगर कोई पति पत्नी मिलकर एचयूएफ बनाना चाहते हैं और उनके अभी कोई बच्चा नहीं है तो वे आने वाले बच्चे का जिक्र कर भी एचयूएफ बना सकते हैं।

- हिंदू लॉ के तहत हिंदू, सिख, बौद्ध और जैन एचयूएफ के दायरे में आते हैं। इसके दायरे में पत्नी, बच्चे और बच्चों के बच्चे आ सकते हैं।

- एचयूएफ की सबसे छोटी इकाई पति-पत्नी हो सकते हैं। यानी इसके लिए परंपरागत अर्थों में संयुक्त परिवार का होना जरूरी नहीं है।

- बड़ा संयुक्त परिवार भी एचयूएफ हो सकता है।

- रिश्तेदार या दोस्त से गिफ्ट लेकर एचयूएफ बनाए जा सकते हैं।

- एचयूएफ के सदस्य एचयूएफ को गिफ्ट नहीं दे सकते। एचयूएफ के किसी एक सदस्य द्वारा दूसरे सदस्य को पैसे गिफ्ट देने पर छूट नहीं मिलेगी। ऐसे में करदाता अपने नाम से नया हिंदू अविभाजित परिवार बना सकते हैं। नया एचयूएफ बनाने की प्रक्रिया बेहद सरल और आसान है।

- दूसरी तरफ कोई शख्स अपनी संपत्ति का कुछ हिस्सा व्यक्तिगत करदाता के नाम के बजाय एचयूएफ को दे सकता है। इससे टैक्स से छूट का फायदा एचयूएफ को मिलेगा।

- अगर एचयूएफ के किसी एक मेंबर या कर्ता की मौत हो जाती है, तो भी एचयूएफ बरकरार रहेगा।

- नए नियमों के तहत किसी व्यक्ति या एचयूएफ की कुल इनकम 10 लाख रुपये से ज्यादा है तो ई-रिटर्न भरना जरूरी होगा।

- पत्नी के साथ अलग एचयूएफ नहीं बनेगा। एक परिवार में एक ही एचयूएफ होना बेहतर होगा। एचयूएफ के सदस्य परिवार के दूसरे सदस्यों के साथ एचयूएफ बना सकते हैं।

क्या हैं फायदे

- एचयूएफ बनाने के बाद अपनी आमदनी पर आदमी दो तरह से फायदा ले सकता है। एक तो इंडिविजुअल और दूसरा एचयूएफ के सदस्य के नाते। इस तरह एक व्यक्ति 1.70 लाख रुपये की टैक्स छूट का फायदा व्यक्तिगत तौर पर और दूसरी बार 1.70 लाख रुपये का फायदा एचयूएफ के रूप में ले सकता है।

- जिन लोगों के पास पैतृक संपत्ति है या जिन्हें परिसंपत्तियां वसीयत में मिली हैं, वे एचयूएफ का सबसे ज्यादा फायदा उठा सकते हैं।

- एचयूएफ की पूंजी बनाने का सबसे बेहतर तरीका है, वसीयत से मिली परिसंपत्तियों को एचयूएफ में शामिल किया जाए।

- अगर कोई पुश्तैनी जायदाद बेची जाती है तो उससे मिली रकम को भी एचयूएफ को ट्रांसफर किया जा सकता है।

- सैलरीड लोग पैतृक संपत्ति जैसे प्रॉपर्टी आदि से होने वाली आमदनी पर टैक्स बचत के लिए एचयूएफ का सहारा ले सकते हैं।

- एचयूएफ पीपीएफ खाता भी खुलवा सकते हैं। पीपीएफ अकाउंट की ब्याज दर हर साल के लिए तय होती है और इसमें जोखिम नहीं है।

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Tax implications of forming a HUF

 

Tax implications of forming a HUF

How to save tax by forming an HUF?

A HUF is taxed separately from its members, therefore, deductions (such as under Section 80) or exemptions allowed under the tax laws can be claimed by it separately. For example, if you and your spouse along with your 2 children decide to create a HUF, all 4 of you as well as the HUF can claim a deduction for Section 80C. HUF is usually used by families as a means to build assets. Let’s understand in detail.

How is HUF taxed?

• HUF has its own PAN and files a separate tax return. A separate joint Hindu family business is created since it has an entity separate from its members.

• Deductions under section 80 and other exemptions can be claimed by the HUF in its income tax return.

• HUF can take an insurance policy on the life of its members.

• HUF can pay a salary to its members if they contribute to its functioning of the HUF. This salary expense can be deducted from the income of HUF.

• Investments can be made from HUF’s income. Any returns from these investments are taxable in the hands of the HUF.

• A HUF is taxed at the same rates as an individual.

 

• Let’s understand a HUF is taxed with an example – After the death of his father, Mr Rajesh Chopra decides to start a HUF with his wife, son, and daughter as members. Since Mr Chopra had no siblings, the property held by his father was transferred in the name of the HUF. The property held by late Mr Chopra earns an annual rent of Rs 7.5 lakhs. Mr Rajesh Chopra has an income from salary of Rs 20 lakh. By creating a HUF, Mr Chopra can save tax, see below.

Income from various sources	Income of Mr. Chopra before formation of HUF	Income of Mr. Chopra after formation of HUF	Income of HUF
Salary	20,00,000	20,00,000
House property rent	7,50,000	–	7,50,000
Standard deduction on house property	2,25,000	–	2,25,000
Income from house property	5,25,000	–	5,25,000
Total taxable income	25,25,000	20,00,000	5,25,000
Section 80C	1,50,000	1,50,000	1,50,000
Net taxable income	23,75,000	18,50,000	3,75,000
Tax payable	5,53,625	3,91,400	7,725

Total tax paid by Mr. Chopra & HUF	3,99,125
Tax saving due to forming an HUF	1,54,500

Due to this tax arrangement, Mr Chopra saved tax of Rs 1,54,500. Both HUF and Mr Chopra (as well as other members of the HUF) can claim a deduction under section 80C. Furthermore, the income of the HUF can be invested by the HUF and will continue to be taxed in the hands of the HUF. Need help with estimating your taxes as an HUF? Our CAs can help you

3. How to form an HUF?

While there are tax advantages of forming an HUF, you must also meet some conditions –

• One person cannot form HUF, it can only be formed by a family.

• A HUF is automatically created at the time of marriage.

• HUF consists of a common ancestor and all of his lineal descendants, including their wives and unmarried daughters.

• Hindus, Buddhists, Jains and Sikhs can form HUFs.

• HUF usually has assets which come as a gift, a will, or ancestral property, or property acquired from the sale of joint family property or property contributed to the common pool by members of HUF.

• Once a HUF is formed it must be formally registered in its name. A HUF should have a legal deed. The deed shall contain details of HUF members and the business of the HUF. A PAN number and a bank account should be opened in the name of the HUF.

4. Disadvantage of forming an HUF

Though HUF seems like the perfect way to save tax as a family, it comes with its own drawbacks. Equal rights of members: The greatest disadvantage of opening a HUF is that its members have equal rights on the property. The common property cannot be sold without the concurrence of all the members. Any additions to the family, by way of birth or marriage, become a member of the HUF and get equal rights. A HUF can get too large to manage. Partition: Perhaps the worst nightmare of opening a HUF is closing it down. The only way a HUF can be dissolved is by a partition. All members have to agree to dissolve the HUF. Under a partition, assets are distributed to members which can lead to a lot of disputes and can be a lot of legal hassle. Joint family system losing relevance: HUF was recognised as a separate taxable entity by the income tax department. However, in today’s times, where nuclear families are the norm, HUF is losing relevance. Several cases have come to fore where couples or families are fighting it out on common household expenses, forget to pool in of assets. Divorce rates are rising and therefore, HUF as a tax vehicle is losing importance. HUF continues to be assessed as such till partition: Once a HUF is formed, you must continue to file its tax returns, unless a partition takes place. Any claim for partition is made to the assessing officer. The assessing officer, on receiving such a claim, must make an enquiry after giving due notice to the members. Income from the property which was partitioned is taxed as individual income of the member. If the member forms another HUF with his wife and children, the income of the property which was transferred from the original HUF is taxed in the hands of new HUF.

5. Frequently Asked Questions

 

• Who is the Karta of an HUF?
  The head of a HUF is called the Karta, he is the senior-most male member of the family.
• Can a Woman be HUF Karta?
  Yes! Until January 2016, a woman could not be the HUF Karta. But in a landmark case, the Delhi High Court ruled in favour of a female being the Karta of a HUF. However, the same has not been incorporated in the Income Tax Act as yet.
• Who are HUF Coparceners?
  All the members of the Karta’s family can be members of the HUF. The male members are called coparceners, while the females are referred to as just members. The difference between the two is that any of the coparceners can demand partition of the HUF. The female members do not have this right in most parts of the country, except for some states like Maharashtra and Tamil Nadu that have allowed unmarried daughters to function as coparceners. The Hindu Succession (Amendment) Act, 2005 which came into force from September 9th September 2005 removed this gender discrimination by giving equal rights to daughters as sons. The daughters become the coparceners of their father’s families on birth in the same manner as sons and have the same rights as sons in the family properties.
• Can a daughter claim a share in her father’s property where her father had passed away before the amendment made in 2005, giving equal rights to daughters and sons?
  No. Both the daughter and the father has to be alive on the date of the amendment for the daughter to get the benefit, irrespective of whether she has been married or not on that date. If the father has passed away before the amendment date, then she wouldn’t have been a daughter on the date of the amendment. Hence she cannot claim a share in father’s property. a. Are there any incomes which are not taxed as income of HUF? b. The following incomes are not taxed as income of HUF c. If a member transfers his self-acquired property to the HUF without receiving proper sale consideration, income from such property is not taxable in the hands of the HUF. It will continue to be taxed in the hands of the member. d. Personal income of the members cannot be treated as income of HUF. “Stridhan” is an absolute property of a woman, hence income from it is not taxable as income of HUF. e. Income from an individual property of the daughter is not taxable in the hands of HUF even if such property is vested into HUF by the daughter.
• Are there any minimum number of coparceners required for an entity to be taxed as HUF?
  A HUF can be formed with just two members one of whom is a coparcener. But for an entity to be taxed as a HUF, it should have at least two coparceners. For instance, if HUF consists of only the husband and wife, then there is only one coparcener. So it will not be taxed in the hands of HUF except in the case where the funds are received on the partition of larger HUF. It will be taxed in the hands of a sole coparcener.
• Should a HUF always be a resident of India
  It is not necessary that a HUF must always be a resident of India. In case the control and management of the HUF are situated outside India, the HUF would be a non-resident. Where the affairs of the HUF are managed from outside India, the HUF would be a non-resident.
• Karta of HUF sits outside India. HUF is managed by the other members residing in India. Will HUF be a non-resident?
  The residential status of a HUF is determined not on the basis of where the Karta resides but on the basis of where the HUF is managed from. In this case, though the Karta resides outside India, the HUF is managed by members from India and hence the HUF will be a resident of India.
• Can the members of the HUF and the HUF separately claim deduction under Section 80C?
  The HUF being a separate taxable assessee, can claim a deduction under section 80C. However, the member and the HUF cannot claim a deduction in respect of the same investment made or expense incurred.
• Upon the demise of the Karta, who takes over the title ‘Karta’?
  Upon the demise of Karta, the eldest male member of the family becomes the Karta of the family. Even when the deceased Karta’s wife is alive, the eldest son or any other eldest male member of the family will take over that position.
• What happens if the eldest male member of the family is an NRI?
  A HUF is considered to be a resident of India if the control and management of its affairs happen wholly or partly in India. In some cases, the Karta of the family may be non-resident. The resident status of the family will not change to be non-resident only because the Karta is a non-resident unless the decisions concerning the family are made outside India.
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How To Form A HUF?

 

How To Form A HUF?

Minimum two members are required to form a HUF, constituting a joint family. A HUF is automatically formed when a person marries and start their family. It is not compulsory for the couple to have kids. Owning an estate or a property is also not mandatory to form a HUF. The Hindu Law though does not govern Buddhists, Jains, and Sikhs; it can be treated as a HUF for taxation purpose. In HUF, the income generated belongs to the whole family, instead of a specific individual. Thus, this income is then taxed in the hands of the HUF. Naturally, HUF is treated as a distinct entity for tax purposes. HUF need to have a separate PAN card and need to file separate IT returns.

One of the major benefits of the Hindu Undivided Family is that it is considered a separate legal entity. This entitles HUF to obtain a separate PAN card and bank accounts in the name of the HUF. Once a HUF is formed, typically the oldest member of the family becomes the “Karta” and is provided with an additional exemption. In addition, the tax slabs are lower when compared to that of regular corporates. Until January 2016, women were not eligible to be the Karta of a HUF. However, the Delhi High Court, in a landmark case, gave the decision in favor of a woman being the Karta of HUF. The decision is yet to be implemented in the Income Tax Act.

Steps To Create HUF

There are 3 steps involved in creating a HUF. They are mentioned below:

Step 1: Create A HUF Deed

It is a formal legal document on a stamp paper which clearly states the names of the ‘Karta’ and the co-parceners (other members). In addition to this, another declaration is provided by each family member where they declare the name of ‘Karta’ and agree that

• the ‘Karta’ has the right to monitor all the transactions of the HUF account on their behalf
• the members declared in the deed are the only members of the HUF
• the ‘Karta’ has the authority of the HUF account

Step 2: Apply For HUF  PAN Card

The HUF is considered as a separate entity for tax purposes, it needs to have a separate PAN card. You need to fill the form 49A to apply for the PAN Card. It can be done both offline as well as online.

Step 3: Open HUF Bank Account

A HUF needs to have a separate bank account which will get all the payments. It can be opened in any bank.

How Is HUF Taxed?

• HUF is eligible for deductions under section 80 and other relevant exemptions
• Allowed to take insurance policies for its members
• Can also pay salary to its members should they contribute to HUF functioning
• Investment is allowed from HUF income and returns from such investments are taxable.

Income Of HUF

Any income that is derived from the below may be regarded as income of HUF:
• Profit from business including profession
• Income from house property
• Capital gains
• Other sources
Given that the HUF is a separate legal entity; it is not entitled to any salary income. Also, any income that is derived from investments made by the HUF is assessed and taxed separately.

Who Should Opt For HUF?

HUF arrangement suits those taxpayers who have income from ancestral property and expects to inherit these assets (both real and financial). A taxpayer will be able to divert the inheritance to the HUF account and thus preventing personal tax liability from increasing. In addition, HUF is also beneficial to taxpayers with a higher savings rate.

Legal Formalities Involved While Forming A HUF:

• Form corpus – A capital asset can be used to form the HUF. It can be any ancestral property, assets received as a gift from relatives or through a will.
• Register a deed – A deed is required on stamp paper declaring the formation of the HUF. It should include information of the Karta and the co-parceners. In addition, sources of funds in the corpus are also mentioned. Once the declaration deed is made, the Karta can apply for a permanent account number (PAN) for the HUF as a separate legal entity.
• Opening bank account – Once the PAN is allocated, open a bank account in the name of the HUF.

We hope that you have got a detailed insight on the Hindu Undivided Family and its working. Should you wish to know more about HUF or any tax-related matter with HUF, feel free to connect with us and we shall be glad to assist.

HINDU UNDIVIDED FAMILY (HUF)

HINDU UNDIVIDED FAMILY (HUF)

i.            Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31)​ of the Income-tax Act, 1961 (herein after referred to as ‘the Act’). HUF is a separate entity for the purpose of assessment under the Act.

ii.            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. An HUF cannot be created under a contract, it is created automatically in a Hindu Family.

iii.            Jain and Sikh families even though are not governed by the Hindu Law, but they are treated as HUF under the Act.

Assessment of HUF :-

An HUF is recognized as a separate assessable entity under the Act. Its income may be assessed if following two conditions are satisfied:

i.            There should be a coparcenership. In this connection, it is worthwhile to mention that once a joint family income is assessed as that of HUF, it continues to be assessed as such in subsequent assessment years till partition is claimed by coparceners.

ii.            There should be a joint family property which consists of ancestral property, property acquired with the aid of ancestral property and property transferred by its members.

Ancestral Property: Ancestral property may be defined as the property which a man inherits from any of his three immediate male ancestors, i.e. his father, grandfather and great grandfather. Therefore, property inherited from any other relation is not treated as ancestral property. Income from ancestral property held by following families is taxable as income of HUF:

·         a) A family of widow mother and sons (may be minor or major) ;

·         b) Family of husband and wife, having no child ;

·         c) Family of two widows of deceased brothers ;

·         d) Family of two or more brothers ;

·         e) Family of uncle and nephew ;

·         f) Family of mother, son and son’s wife ;

·         g) Family of a male and his late brother’s wife.

Note

Property obtained by daughter from joint family property would be her absolute property. Any income therefrom is chargeable to tax in her hands in the individual status only. This will also apply to any legal heir obtaining property in the capacity of a descendent.

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Taxability of HUF

In order to compute the income of an HUF, one has to first ascertain its income under the different heads of income (ignoring incomes exempted under sections 10 to 13A of the Act). The following points should be keep in mind while computing income:

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