R
Ritesh Shah
Regarding HUF Tax Planning to Avoid Clubbing Provision and Tax Notices:
recently created a HUF which consists of me as Karta (by taking NOC from dad) and my dad as Coparcener. HUF Deed includes only me and my dad.
Suggest safe options from following
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Option 1: BRINGING RENTAL INCOME TO HUF
I am co-owner in a purchased office with my parents (during 2005, my age around 23 at that time), NOW, I want to bring in rental income to HUF without getting Clubbing provision.
> Query 1. From the following which is safest way without getting IT NOTICE, or tell me best solution available with you.
1. Making a registered gift agreement by karta (doner) to huf (donee) without any consideration, so, Will this trigger clubbing provision on earned rent or
2. making first LONG LEASE agreement between karta (landlord) and HUF (AS A TENANT) , (where 3000 rent paid by KARTA to HUF & In the second agreement, by way of sub tenancy or Leave & Licensing same office at 30000 license fees from licensee MR.ROHIT , so karta receives 3000 rent from huf, and huf receives 30000 license fees from its licensee? Here as HUF is receiving License fees and also paying rent to Karta so clubbing provisions will apply in such a case?. ) or
3. Karta makes will in favor of HUF, so inheritance is denied from karta’s side and SO DOES clubbing apply here.?
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Option 2. LOAN
To bring my investment in HUF without clubbing,
1. Karta gives loan to HUF at 0.5 to 2% per year and
2. huf makes investment , earns interest at approx 10 % per year
QUERY 2.
1. Does IT Dept allows 0.5 to 2% annual interest Income tax??
2. How much loan can be given to huf safely?
J
Jayant Kumar
I am a government Employee.
I wish to start a Business in my wife's name. For this I am taking a personal loan of Rs 18 lacs from bank on the pretext of hone renovation and other personal expenses which I wish to pass on to my wife's bank account as a gift amount to my wife.
That amount will then be transferred to the firm's account in the name of which my wife will do the Business after GST registration of the firm.
Kindly let me know are there any legal implications involved in this?
Can I take personal loan of 18 lacs on the pretext of home innovation and other personal expenses and pass it on to my wife's account for helping her start her Business?
Kindly suggest from legal Point of view.
If there would be any legal implications involved, then I will drop the idea.
If there would be no any legal implications involved at a later stage also, Kindly suggest how I would be able to save taxes in this scenario as the Income from her Business would be clubbed with my Income for Taxation.
Thank You.
S
Soumesh Bhattacharjee
I’m going to get paid from international clients for marketing services. Who will deduct the TDS . I’ll also be paying subcontractors outside india . Do i need to cut TDS for them and if so what percentage is needed. Payments will go upwards of $1000.
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Hi Soumesh ! If you are getting payment from International Clients, there is no TDS implication, however when you are paying to person outside India, we need to check whether the service has been provided within india or outside india, TDS implication would be decided based on that, for complete understanding feel free to connect with me on cayashchopra@gmail.com.
Also ensure you have undertaken to sign a GST Registration
S
Sandhya
S
Shweta
