Rental income deposits in HUF account.

Rental income should belongs to owner. Thus, it should be taxable in your hand. It would be wrong to show it in the books of HUF.

For that you need to register the property in HUF name. You may lead to stamp duty and registration charges

Dear Sir,

Hope you are doing well !!

You can transfer your income to HUF a/c , but you cannot escape the tax liability on that income due to clubbing provision.

It will be taxable in your hands only.

- It will be a transfer of income without transfer of assets. rental will be clubbed in your hands. For your business income you can claim the benefits of presumptive taxation scheme if eligible. 

- Income from conversion of self acquired property into joint property without adequate consideration is clubbed in the hands of transferor.

For detailed discussion, you may contact personally.

Hi,

The rent of the property will be taxable in the hands of the owner of the property. If you are owner, it will be taxable in your hands.

However, if you rent out the property to HUF and then HUF sublease the property to other tenants, an arm's length profit can be assigned to HUF.

Doing so won't help you save tax.

Hope you find the information helpful if you do please rate it 5 and if you need any further discussion you can book consultation.

Thank you