ABOUT NPS

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  1. SSd

    SSd New Member

    Thanks , for the advise , Then what TAX SAVINGS avenues are THERE for a HUF or karta Of HUF under 80C, 80CCD or anything else ?
     
  2. ZED

    ZED Well-Known Member

    Following avenues are open for the Karta of HUF (an individual)
    Section 80C
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    Section 80G


    Now, out of the above deductions, certain deduction are available only to individuals
     
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  3. SSd

    SSd New Member

    Can a karta of HUF , buy NPS (80CCSD(1)) for himself and either of co-parcener and a member of a HUF , from funds of HUF ?
     
  4. ZED

    ZED Well-Known Member

    As explained earlier, not directly
    Let the HUF "GIFT" the money ,via gift deed, to the karta or any of the co-parcener , the gift would be exempt by virtue of proviso to S.56(2)(vii) and there shall be no clubbing of income either.

    I advise that the income from NPS should not be given to HUF.
    Although this can be done but there can be issues in future so let's avoid it and have peace of mind.
     
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  5. SSd

    SSd New Member

    Thanks, TAX PLANNING for a HUF is also ,a EXHAUSTIVE NON ATTENDED SUBJECT MATTER ;
    Hence -peace of mind- has to be properly worked out-
    enthusiasts and learned people should , guide , as difference of opinion is at large ;
    like instead of a sec. 80CCD ..some are being advised to Go for s.56(2) (vii) ;
    i feel it is OK. ,if one exhausts 80CCD, for a karta and coparcener /-& member;
    one may Go for s56(2) (vii)

    any views-further either agreeing or of disagreement are always welcome
     
  6. ZED

    ZED Well-Known Member

    I am not sure if we have consensus since you said
    56(2)(vii) was merely a route for providing the funds to the karta or the co-parceners
    Exemption shall be availed by the karta / co-parceners u/s 80CCD ONLY

    You asked whether funds of HUF can be used and for this I suggested the modus operandi of Gift.

    I clarify again
    Funds shall first be given by HUF to the individual as gifts [Gifts are not taxable if given to relatives and for HUF all the members are the relatives] so as to enable the individual to invest in the scheme.

    BOTH THE PROVISIONS ARE OPERATIVE
    Its not "instead of S.80CCD"
    As a matter of fact, merely by gifting one can not claim any deduction, your objective is to claim deduction.


    If you have any other doubt, then you may ask.
     
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