Hey @tallerballer, @anilsaxena @paekut,
Addressing all the queries related to clubbing:
The following conclusions can be drawn from the provisions of clubbing and gifts according to the Income Tax Act.
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An HUF can build a corpus at the time of incorporation. Any capital raised and contributed at the time of incorporation is treated as HUF’s capital and clubbing provisions shall not apply.
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After the HUF is formed, the members can pool capital in the HUF and transfer capital as a gift. Gifts from members are exempt in the hands of the HUF and the HUF can use this capital to generate income, clubbing will not be applicable here.
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However, if the members transfer any personal movable/immovable property to the HUF, any income generated from the property will be clubbed.
Hope this clarifies the queries. We have also corrected the previous response accordingly.