I have created my HUF with my wife and son with no consideration or ancestral property, I am the karta of HUF
Currently I have Bonds, SGB’s, Stocks and MF’s and some cash, I do not have ancestral property to attach to huf currently
I want to raise funds in HUF and want to avoid clubbing provisions, also want to explore ways to legally better plan the tax and eventually start family business
I have few queries regarding below solutions and want to know if it is legal to implement it , if not what are the alternative means to achieve the same
1] Give as interest free or interest at RBI Bank Rate (2.5%) for X number of years loan to my HUF and apply the money to purchase bonds, Stocks or any other asset from Me, My relative or open market , Can I have a digital documentation of such loan agreement instead of stamp paper
2] Can I purchase SGB’s in secondary market which are about to mature and gift to my HUF, as SGB do not have capital gains tax and once the amount is matured I can apply the fund to purchase other assets.
3] Can I offer my stocks or bonds as loan and expect bank interest rate from HUF for value on execution day.
4] may be 20 years down the line I will inherit ancestral property, what are the tax and cost implications to receive the property under HUF
5] Is it possible to dissolve the current HUF and then recreate new HUF
Are there any other ways I can raise funds for HUF
What builds fund raising legal and illegal when attempting to avoid clubbing
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