Can a HUF Member transfer own Assets to the HUF?

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  1. rvmanju

    rvmanju New Member

    Sir, after my Father's death, all his investments (FDs, KVPs NSC etc) from his retirement have been transferred to my mother. My mother is also retired and have her own investments as FDs in banks and also she receives Family pension after my Father's death. To reduce her tax liability, is it legal to move my Father's investment corpus to my HUF? or will the clubbing rules be applicable as its been transferred to my mother as she is the nominee? Please advice
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    A member of HUF can at anytime transfer assets to the HUF

    However, he would not be able to take back the assets later as these will become assets of the HUF and all huf members will have a right over such assets.
     
  3. rvmanju

    rvmanju New Member

    Thanks Gaurav. Understood.

    My question is, if my Mother gifts all my Father's assets to HUF will the clubbing rules apply? I've to show the income generated from the Father's assets as HUF income / it needs to be clubbed with my mother's income?
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    The clubbing provisions will not apply in this case as the gifts cannot be received back
     
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