Can Individual Income be shown as HUF Income?

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  1. Mukesh_R

    Mukesh_R New Member

    Let's say HUF and Individual are same persons.
    1. Can the Income of Individual be reported in HUF?
    2. Does pension and its interest earnings needs to be reported?
    3. Interest earned on RD on individual bank account, can it be reported in HUF?
    4. HUF's PAN number, can it be allocated to Karta's Bank account?
    5. HUF's assessable income, - Can co-parcener and member's contribute to the income?
    6. What are the HUF's tax exemption: mainly for regulated income source like income from house rent, accrued interest on karta's and individual's bank account, demat account etc.
     
  2. rudrabose

    rudrabose Active Member

    Answer for your Ques 1 to 5

    The Individual may be the Karta of the HUF and his name may also appear on the HUF but these are 2 legally separate entitites with separate PAN Cards and Income of one cannot be reported as the income of the other.

    There none of the 5 things asked by you are allowed.

    Answer for Ques 6
    The Deductions allowed to HUF are mostly the same as the deductions allowed to an Individual
     
  3. Mukesh_R

    Mukesh_R New Member

    If thats the case, what would be the income categories for HUF?
    Rent from a property, can it be reported in HUF category? Should the property be in the HUF's name, which is not the case?
    If No, i'm little puzzled that, HUF is used only during the property sell/buy for the Capital gain taxation?
     
  4. rudrabose

    rudrabose Active Member

    Dear @Mukesh_R

    Please note that HUF and Individual are 2 different entities. Income of Individual cannot be reported as income of HUF.

    If your parents gift any parental property, that can be considered in HUF and the rent arising from that property or the Capital Gains on sale of that property can be reported in HUF's name.

    The HUF may also earn income by doing some business or through Interest income.
     
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