17 November 2011
Quey : Wife of Mr A is holding the commercial permise. Mr. A formed an HUF and obtained Rights to tenancy from his wife in favor of HUF as GIFT and sub-letted the Property and recieved the rental income in HUF. What would be tax implications ? Please also refer the clubbing provisions.
17 November 2011
The tax liablity on income will be on HUF only but for wife the gift of entitlement of tenanacy will be taxable as it will not amount to relative as defined under section for gift to relatives. and hence amount will be taxed.
CAclubindia
