Our team of professionals are working around the clock to help you out in tax guidance and we offer a wide range of advise and services such that you can have a stress free tax audit. You can save taxes by creating a family unit and pooling in assets to form an HUF. HUF has its own PAN and files tax returns independent of its members. We also extend our services to Firms and Limited liability partnership. Our extremely talented group of professionals can help you to save taxes and can perform auditing on firms and LLPs.
1. What is HUF?
The term ‘Hindu Undivided Family’ has not been defined under the Income Tax Act. It 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.
2. What is the difference between individual and HUF?
The Karta is the senior-most male coparcener of the HUF. All the members of the Karta’s family can be members of the HUF. The male members are called coparceners, while the females are referred to as just members. The difference between the two is that any of the coparceners can demand partition of the HUF.
3. What is LLP?
A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It, therefore, can exhibit elements of partnerships and corporations. In a LLP, each partner is not responsible or liable for another partner’s misconduct or negligence.
4. How is LLP taxed?
From assessment year 1993-94, a partnership firm is treated as a separate taxable entity and has to pay tax on its income. Income of a partnership firm is taxed at 30% plus 2% education cess plus 1% secondary and higher education cess – similar to a private limited company