05 December 2009
Can MrX and MrsX owing a joint property transfer the same to HUF? House property is self occupied throughout the previous year.What will be the tax implication of the same?
05 December 2009
As HUF is not a relative of either Mr. or Mrs. X and Mr. & mrs. X are not relatives of the HUF. Therefore the entire property value will be taxed as IFOS in the hands of the HUF.
U/s 64 for purpose of rental income or accrual of benefits, the income will be taxed to the individuals to their share of co ownership assuming that both have individually paid adequate consideration to acquire the property. If husband has paid all money and wife is co owner for convenience sake the entire income from the property will be taxed in the Husband's hand.
For wealth tax also the assets will continue to attract wealth tax at the hands of individuals.
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