HUF tax free loan

[sb210]

Hi all,

Can a Karta give tax free loan and have future income transfer to HUF PAN instead his/her PAN. What % would be safe to move to HUF of total asset?

Please reply of you have done it..

 

[NABNAB is verified member.]

Karta giving an Interest-free loan to HUF can be considered a conflict of interest, and AO can put those income taxable in the hands of Karta.

Karta/Members can gift any amount they wish. It will be not taxable but must be shown in ITR as an exempt income.

There may be more technicalities around it.

PS: I am not a CA/Tax Expert. I would suggest you consult a good CA/Tax practitioner for such important financial planning.