if yes, what is the tax implications ? @Quicko
Hi @Prashanth_1
Yes, it is possible to transfer the GSECs that you have purchased in your individual account to your HUF account. Assuming the transfer is done without any consideration, there will be no tax liability on the individual transferring the GSECs.
In the hands of the HUF, the transfer of GSECs will be treated as a gift. However, since it is a gift from a relative, it will not be subject to any tax under the Indian Income Tax Act.
@Quicko What is the maximum amount that can be gifted to an HUF account in a year?
Is it possible for Karta to transfer money directly from their personal bank account to the HUF bank account and use the funds to purchase G-Secs in the HUF demat account?
According to the Income Tax Act, there is no such limit on gifts that an individual may give to a HUF.
Yes, a Karta can transfer his money directly from their personal bank account as his contribution and use those funds to purchase GSEC in the HUF demat account.
Before jumping to any such decision, one must take into account provisions of clubbing of income u/s 64(2). It may turn tables
My advice, take professional advice of Chartered Accountant.
Yes, it is possible to move the GSECs that you purchased in your individual account to your HUF account. However, there are a few things that you need to keep in mind.
First, you will need to transfer the shares from your demat account to the demat account of your HUF. You can do this by submitting a request to your broker.
Second, you will need to pay stamp duty on the transfer of shares.
Third, you will need to update your HUF’s PAN card with the new shares. (You can do this by submitting an application to the Income Tax Department.)
Once you have completed these steps, the shares will be transferred to your HUF account. You will then be able to hold the shares in the name of your HUF and enjoy the benefits that come with being a HUF member.