Here is an overview on how a HUF forming can be a perfect tax planning tool. While in business or job, every individual wants to reduce the income tax burden.
Various tax-saving schemes like investments are adopted to save tax. Tax evasion is an illegal thing, but proper tax planning is the best way to reduce your income tax. HUF or Hindu Undivided Family is a separate legal entity unique to India.
Any family can form a HUF to start a business regardless of the type of product and services. HUF is the best form against Proprietorship and Pvt ltd companies as far as income tax is concerned. Any HUF is governed by the Karta who is the head of the family. HUF can have a separate PAN card separately from the members. So, forming HUF will let you have additional PAN in your family.
Any Indian family can form a HUF. HUF pays tax and file returns independent from the members. A new separate PAN card is allotted to the HUF. So, here are the main points how HUF is a great tax planning tool.
Moreover, any investment or any insurance which is taken by the HUF comes under tax deduction system.
Further, the following list of the incomes will show you how HUF formation is a powerful way of saving tax.
All these incomes earned by HUF are not taxable as income of HUF. Thus, there are multiple ways in which HUF gets tax exemptions. We at ebizfiling help you for Hindu undivided family creation, HUF Deed Creation, HUF creation procedure, HUF creation services, HUF Formation services.
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