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.