Tax on transfer of family propertytrust to its beneficiaries

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CA. ANKIT AGARWAL (Querist)
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05 January 2015 What will the tax liability(Income Tax and Capital Gain) on transfer/ distribution of Family Trust Property to its beneficiaries,

Implication of Revocable and Irrevocable Family Trust (having defined beneficiaries and their shares) on distribution of that family Trust Property to its beneficiaries.

Also whether answer will be same where settler and beneficiaries are same person in the family Trust Deed ?

What Should be incorporated in Trust deed regarding this distribution ?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 January 2015 As and when any income arises to private family trust the same is taxed in the hands of the trust and then at the time of minor becoming major the property transferred is tax free.

This type of trusts were formed when the tax rates were very high and trusts were investing in tax free securities to give the benefit to the minor but now hardly anyone is forming these trust. Specially in Kolkata people are forming these type of trusts

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CA. ANKIT AGARWAL

CA. ANKIT AGARWAL (Querist)
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14 January 2015 Thanks
Sir

I have also a querry regarding Gift By HUF,

I have read many articles on various sites but have some little confusion please clear.

Can HUF make gift its Property to a member of HUF or to Karta only thru Partition ?

HUF have many properties but wants to transfer shares held as investment to Karta or to Wife of Karta ?

Whether there is any case where Shares held by HUF can be transfer to it Karta/wife/son (not to all members of HUF) ?

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