My wife and I have a joint residential flat on which she receives rental income. My query is:
1. Can we form a huf with three members, myself, my wife, and my son of 18 years where this rental income can be transferred into this HUF account.
2. Is it so that my wife after my death will have no legal right on this property as she is a female member and my son being a male member of HUF will have complete rights on this property?
3. can we three pay to the HUF account from our individual bank account?
4. Will the amount transferred from our individual bank account can be claimed as a gift so that we don't have to pay income tax on the transferred amount from our individual bank account?
1. Yes you can start a HUF within your family members.
2. Your wife will be having rights as your legal heirs to claim her legitimate share in the property on your name.
3. Yes
4. there is no impediment to starting a new HUF by gift from family members.
Rental Income from property: Rental income from a property could be received on behalf of a HUF instead of an individual account. Business Income: Profits generated out of the family business, in the name of a HUF, shall be taxed accordingly and exemptions will give more leverage on tax saving.
