I want to create HUF deed/Purchase Property/Reduse GST

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To create an HUF (Hindu Undivided Family) and reduce future GST liability while ensuring equal division of income among your children, you can start by formalizing the HUF. An HUF is automatically created upon marriage for Hindus, but to formalize it, you need to apply for a PAN card in the name of the HUF and open a bank account for it. The head of the family, known as the Karta, manages the HUF, and you can choose to be the Karta. Next, draft the HUF deed. The deed should mention the Karta, all members (your wife and children), and the assets or property that the HUF holds. It’s important to clearly state in the deed that the income from rent or other property earnings will be divided equally among all members, including your children. An HUF is treated as a separate entity for tax purposes. By transferring the property to the HUF, any rent or income generated can be taxed in the HUF’s name, not yours individually, which can help reduce the overall tax burden. GST applies if your rental income exceeds ₹20 lakh annually. To minimize GST liability, you can distribute the income across multiple family members, keeping each below this threshold. To ensure everything is structured correctly, it’s advisable to consult a tax expert or lawyer. They can help you set up the HUF properly and draft the deed in a way that achieves your goal of reducing GST liability while managing income effectively.

Advocate Rohan Venkatesh Yemul LawRato