Huf taxed u/s 54

This query is : Resolved

Mayank Berlia (Querist)
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30 November 2018 Property is held in name of karta. But shown in IT file of HUF as it is ancestral property. So when this property is sold in whose name cheque should be taken. personal name or full huf name. And in whose file should it be taxed?

Z (Expert)
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01 December 2018 Property of the HUF should have been in the name of the HUF.
Ancestral property goes to the legal heir in their individual capacity AND NEVER TO TH HUF (sbt the following Acts)
If the true owner of the property (being a male) expired intestate, then the S.8 of the Hindu Succession Act 1956 is applicable

If the owner of the property expired after creating a will then Indian Succession Act 1925 shall apply. Therefore, if in the will it was not specifically provided that the property shall devolve to the HUF then it CAN NOT devolve to the HUF.

The return filing is wrong and would be considered as done with malicious intention. Take all the necessary steps to avoid getting into trouble.

S.8. The property of a male Hindu dying intestate shall devolve according to the provisions of this Chapter : -
(a) firstly, upon the heirs, being the relatives specified in class I of the Schedule;
(b) secondly, if there is no heir of class I, then upon the heirs, being the relatives specified in class II of the Schedule;
(c) thirdly, if there is no heir of any of the two classes, then upon the agnates of the deceased; and
(d) lastly, if there is no agnate, then upon the cognates of the deceased.