HUF Request for early reply & help

This query is : Resolved

pradeep (Querist)
Follow

05 February 2011 Facts

Mr. X, citizen of India, got a property as inheritance from his mother when she was alive. The family of Mr. X is comprises with following members:

1. Mrs. X (wife of Mr. X)

2. X’s son Mr. B

3. Wife of Mr. B

4. Son of Mr. B ( minor)

5. Daughter of Mr. B ( minor)

Question

1. Is the property under consideration is eligible for the purpose of creating a HUF?

2. If yes, can whole family be divided to form two HUF? One is for Mr. X and other for Mr. B’s HUF

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 February 2011 As X has got the property from his mother,
its individual property of X.
By transferring individual property to HUF
the provisions of Section 64(2) are attracted. In such case income will be added
in the hands of individual.
As far as creation of HUF is concerned, it is not necessary that an HUF must have an Immovable property. You may create 2 HUF's by way of gifting a small sum of money to HUF also.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

05 February 2011 I am agree with Mr. Bafna reply.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Nitish Jain

CA Nitish Jain (Expert)
Follow

05 February 2011 i also agree.

pradeep

pradeep (Querist)
Follow

05 February 2011 Dear Mr Paras ji kindly help with this Ques also
But X want that income from that property will comes under HUF..is there any way to transfer that property to HUF?
Please guide...

pradeep

pradeep (Querist)
Follow

05 February 2011 But X want that income from that property will comes under HUF..is there any way to transfer that property to HUF?
Please guide...

Guest

Guest (Expert)

05 February 2011 HUF can not be created by acts and agreements.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 February 2011 Pradeepji,

If X is desirous of transferring the income to HUF then he should have to transfer the property to HUF against an adequate consideration or say at a reasonable value.

Upgrade to CAclubindia Pro. Subscribe Now!

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 February 2011 "HUF can not be created by acts and agreements."

I agree with Mr. K.C. Moondra. Thanks for rectifying me.