Posts Tagged ‘HUF Share’

How HUF can be benefited by investing in SharesVault ?

Thursday, September 6th, 2012

SharesVault allows investor to register as HUF Karta. If investor has not registered as HUF than he/she can even apply for the same and get HUF PAN Card and bank account before registering on SharesVault.

HUF Information:
HUF or Hindu Undivided Family is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. Any hindu individual male can create HUF as soon as he gets married to a hindu female. Its not necessary to have children to create HUF.

HUF Benefits:
If you have ancestral property and earning some income from this property, then it is better to transfer this asset to HUF and savetax up to exemption limit applicable to individual.
The income from property of HUF can be further invested in instruments such as shares, mutual funds, etc. and will be assessed under HUF.
In HUF there could be all the females’ members also when the husband dies and she has no sons.
HUF also enjoys wealth tax exemptions available to individuals.

HUF Consists Of:
Karta: KARTA is the father of the family who has the right to do all the things for the family and takes all the decisions on the behalf of the family.
Co-Parceners: Coparcener is the person who has the right to demand the share of the property of family if he/she wants to part away with the family with his/her share.
Member: Are the family members who dont have right to demand the share of the property.

Investment through HUF has to be through HUF Bank Account and HUF PAN Card only. Income generated by returns on share transaction can be count as HUF income which will help in saving tax.

Thus Sharesvault returns can also be helpful in decreasing tax. As it’s combine income and these asset will also get as inheritance to other family members.