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HUF Tax Planning to Avoid Clubbing Provision and Tax Notices

I need clarification on HUF Tax Planning to Avoid Clubbing Provision and Tax Notices. in this case Experience in corporate and HUF cases is crucial in addressing these issues, as they go beyond mere knowledge. Providing case laws and judgments related to the queries would enhance understanding and confidence in the matter.

Thank you in advance for your assistance.

Option 1:
I am co-owner in a purchased office with my parents, money was of parents (during 2005, my age around 23 at that time), NOW, I want to bring in rental income to HUF without getting Clubbing provision.

>> Query 1. From the following which is safest way without getting IT NOTICE,   OR   tell me best solution available with you from general practice and experience.


making LONG LEASE agreement
>>First agreement between karta (landlord) + HUF (AS A TENANT) (where 3000 to 5000 ""rent paid by KARTA to HUF""     & 
 
>> In the second agreement, between HUF + SUB TENANT , by way of sub tenancy or sub letting same office at Rs.30000, ""where HUF receives license fees from subtenant""
"so karta receives 3 to 5000 rent from huf, and huf receives 30000 license fees from its licensee"…
Here as HUF is receiving License fees and also paying rent to Karta, 
Query -- so, will clubbing provisions apply in such a case or can get notice?
 
2. >>  alternative > "no agreements >> between >> karta n huf "
"But only with LICEENSEE" >> here rent is divided into two agreements between
1ST > karta and licensee >> 3000 to 5000 (LEAVE AND LICENSE)
2ND > huf and licensee >> 27000 to 25000.( caretaker/ amenities / service provider AGREEMENT) 

QUERY--> SO to add 25 to 27000/pm, earning under professional fees   or any allowable income source by IT Dept whatever you can suggest here.    
Here 95% income will be under  "( caretaker/ amenities / service provider"

3. >> if above both are risky then what if i take  every year whole  rent  of 3,60,000   as a gift? 

>> my concern is i must have answers & papers  before any  IT inquiry

PS. I can do a registered gift deed to make HUF 100% beneficiary, without consideration but I guess that brings in clubbing.
 

=================
Option 2.  LOAN 
To bring my investment in HUF  without clubbing.  
 
1. Karta gives approx 45 to 48 lakhs+ (or safer limit u suggest), loan to HUF at 0.5 to 2% per year and 
2. huf diversifies investment , earns interest at approx 10% per year.
 
QUERY 2 
1. CASE LAWS, acts AND JUDGMENT >> Does IT Dept allows 0.5 to 2% annual interest Income tax or has any prescribed bare minimum rate??
2. How much loan Shall I transfer all 45+ lakhs  as a loan this year? Or gradually   build for a safety?? 
3. for  this , is it Required to make a notarised  LOAN  agreement for IT Dept?  And is this safe option?
4. How to disclose to income tax about the transferred amount as loan? Or at year end , aggregate total loan and make draft? 
 

28
Apr

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