Taxation for salaried employee funding HUF demat account

[Sudhaker]

Hi,

Me and my wife both are earning members of the family, hence any investments and returns from our trading or MFs would be taxed on top of our salary.
We plan to open an HUF account to transfer funds from both of our accounts and invest in stock market and MFs.
Will the returns from such investment be treated as income of HUF or will that be taxed on our individual PAN?

We do not have any property that we inherited to register under HUF, other than our own salary income we do not have any other source of income.

What are the clauses in using HUF that we need to be aware and any Do's and Don'ts with such accounts?

 

[Sudhaker]

bumping up for notice

 

[zacobite]

Hi,

Me and my wife both are earning members of the family, hence any investments and returns from our trading or MFs would be taxed on top of our salary.
We plan to open an HUF account to transfer funds from both of our accounts and invest in stock market and MFs.
Will the returns from such investment be treated as income of HUF or will that be taxed on our individual PAN?

We do not have any property that we inherited to register under HUF, other than our own salary income we do not have any other source of income.

What are the clauses in using HUF that we need to be aware and any Do's and Don'ts with such accounts?

This needs a proper CA.. Not a crowd sourced forum.. You will only get web inputs.. Please contact a CA..However salaried cannot divert salary income to HUF.. This i can tell you..Else the whole of salaried India would have HUF