Neha Nagar Instagram – We are planning for our next family member after Siya !
Hold on, family planning isn’t quite on the agenda! But we are excited to unveil a tax-saving strategy that might sound surprising.
Introducing HUF (Hindu Undivided Family), our legal partner in unlocking significant tax benefits.
The Situation:
* We, like many families, earn more than the ₹7 lakh tax-free limit in India.
* Seeking guidance, My husband CA Deepak Bhati recommended a unique approach: “creating” another family member…but only on paper,of course!
Enter HUF:
* This separate legal entity, with its own PAN card and bank account, becomes an extension of our family. But who manages its affairs? That’s where Karta steps in!
* The Karta: The head of the HUF, typically the eldest member, plays a crucial role in Decision-making and Legal representation.
* HUF can share our family business income and rental income.
* HUF can also invest in Stocks,MF,Properties etc.
* By strategically splitting our income, we can significantly reduce our overall tax burden! (We will same Rs 55,000)
Beyond Tax Savings:
* HUF enjoys access to most tax benefits like 80C and NPS deductions etc, further maximising our financial advantage.
* It establishes a separate legal identity, keeping our finances organised and streamlined.
Important Notes:
* HUF cannot claim salary income and the 87A rebate.
* Only Buddhists, Jains, Hindus and Sikhs are eligible to form HUF.
* Establishing and maintaining HUF involves legal considerations, so professional guidance is crucial.
Drop a “HUF” in the comments, and I’ll send you detailed information about HUF. Follow @iamnehanagar for more such videos . | Posted on 20/Feb/2024 20:41:18
