Handling Multiple HUF Accounts

Suppose My Family has below PAN Cards:

1) My Father's HUF Account
2) My Father's Individual Account
3) My Mother's Individual Account
4) My Brother's HUF Account
5) My Brother's Individual Account
6) My Sister In Law's Individual Account
7) My HUF Account
8) My Individual Account
9) My Wife's Individual Account

In this case suppose there is a corpus of about 10 lacs in my Dad's Individual account.

Can my Dad transfer these funds to his HUF account and then from there transfer these funds to each of the above mentioned accounts and trade till the income reached the higher tax level in each of these accounts?

Should we pay a nominal Interest to my Dad's HUF account when he transfers funds to my Sister in law's account or my Wife's account so that the transaction is complete and valid in accounting/taxation terms?

Thanks for the help in advance

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If you are talking in context of a trading account, then yes you can transfer funds from your father’s HUF to any of the other bank accounts and then transfer funds to your trading account.

If I’ve understood your question right, you intend to transfer Rs.10 lacs to each account, trade using the transferred funds and generate an income on each of the accounts. As long as you are paying taxes on the generated income, if applicable, it should be fine.

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Sukesh copying what I wrote on Zconnect, this is a grey area and can’t really talk/suggest about such planned tax reductions (which is not really compliant to rules). It is best you speak to your tax consultant about this.