A person want to create his HUF and want to transfer his some of his personal property to the that HUF.He purchased this property on loan.He doesnt want to transfer his loan liability to the HUF. Now my questions are: 1) Whether there will be any tax liability if dat person transfers his personal property to the newly created HUF? 2) is it compulsory to have a male child to create a HUF? 3) Will he required to transfer his loan liability also along with his personal property?
24 February 2011
1. If any person transfer any property without adequate consideration to his HUF, the income from the property will deemed to be income of theindividual. 2. To create a HUF , child is not a condition. 3. You will not required to transfer the loan liability, but your loan provider will not allow you to transfer the property before repaying the loan.
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