Hindu Divided Family
This query is : Resolved
15 March 2011
Dated : 15th March, 2011
Respected sir,
I have already a big HUF. My father is the Karta of this HUF. In this HUF including my father there are four members and their family members. Now HUF has a piece of land and shops, which is purchased by HUF itself by contribution of its members. Beside this HUF has an ancestral land also. Beside this there is a handsome balance of cash in hand.
Now my questions are –
1) Can this HUF distribute all these immovable properties to its members without dissolving the big HUF.
2) If distribution is possible, then what will be the mode of transfer of the property i.e. Will it be treated as partition or gift to its members ? How it will be treated ?
3) Can the members of this bigger HUF can form another smaller HUF with this property ?
Please guide as soon as possible..
Thanks in advance
With regards
(Subhash Mishra)
Respected sir,
I have already a big HUF. My father is the Karta of this HUF. In this HUF including my father there are four members and their family members. Now HUF has a piece of land and shops, which is purchased by HUF itself by contribution of its members. Beside this HUF has an ancestral land also. Beside this there is a handsome balance of cash in hand.
Now my questions are –
1) Can this HUF distribute all these immovable properties to its members without dissolving the big HUF.
2) If distribution is possible, then what will be the mode of transfer of the property i.e. Will it be treated as partition or gift to its members ? How it will be treated ?
3) Can the members of this bigger HUF can form another smaller HUF with this property ?
Please guide as soon as possible..
Thanks in advance
With regards
(Subhash Mishra)
15 March 2011
Reply-1
1. As partial partition is not recognised by income tax, you have to distribute all the properties, and not only immovable properties among HUF's members.
2. In total partition all the members cease to be members of the HUF and as such the big HUF will not remain in existence.
Reply-1
1. As partial partition is not recognised by income tax, you have to distribute all the properties, and not only immovable properties among HUF's members.
2. In total partition all the members cease to be members of the HUF and as such the big HUF will not remain in existence.
15 March 2011
Reply-2
Total Partition will be treated as distribution of property among the members. As it is not treated as transfer U/s 47(i), no capital gains tax liability to the HUF will arise.
Total Partition will be treated as distribution of property among the members. As it is not treated as transfer U/s 47(i), no capital gains tax liability to the HUF will arise.
15 March 2011
Q-3:) Can the members of this bigger HUF can form another smaller HUF with this property ?
No, otherwise it will be deemed as partial partition.
However, on total partition, the nature of property received by a male member will remain as the property of HUF of respective member. If the member is unmarried, till his marriage takes place, the property will be assessed as his individual property. It will become HUF property after his marriage.
No, otherwise it will be deemed as partial partition.
However, on total partition, the nature of property received by a male member will remain as the property of HUF of respective member. If the member is unmarried, till his marriage takes place, the property will be assessed as his individual property. It will become HUF property after his marriage.
21 April 2011
Agreed with expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
