Hi,
Can anyone tell me what is the use of HUF pan card? Someone told me that we can save tax if we invest thru HUF pan card instead of personal pan card. If thats the case can nyone tell me how one can do that?
I think you want to know what is the use of HUF. i.e without HUF there is no use of HUF pan card.
First you have to creat a HUF , then apply for it's pan card and thereafter go for Income tax return filling for such HUF. HUF is separate legal entity .
Suppose mr. X created a HUF with his family and he became the KARTA of such HUF.He first should obtain PAN no . of his HUF, there after he can file separate income tax return for such HUF. he can distribute his income between himself, his wife, his HUF etc.and may get exemption u/s incometax act in all cases and ultimately tax burden will be reduced much.
It is a good tax planning avenue.Ask your local CA or IT consultant , it will reduce your tax burden.