Taxation on transfer of asset in case of huf partition

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2013 Hey
Anyone can tell me any relevant case laws regarding followings

Father HUF is dissolving.
HUF property are transfered.

Such HUF property should be transfer to member's individual account or to member's personnel HUF?

And what is tax benefits in both options.

Thank u so much in advance

Prakash Kochar

Prakash Kochar (Expert)
Follow

19 January 2013 HUF can not be dissolved but HUF property can be partitioned among the members or group of members.
All male members will be receiving property on behalf of HUF in capacity of manager of HUF. Unmarried male members will hold the property in their individual capacity till they gets married, Female members will receive thew share in their individual capacity.
If there is full and complete partition of which finding is given by AO u/s. 171(3),then only income from date of partition will be assessed in the hands of unit of recipient of partitioned property.
Complete partition is essential w.e.f. 31.12.1978.
Partitioned property will be credited to respective smaller HUF or individual if unmarried member and other individual members who received the property in family partition.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2013 Agree with you Mr. Kochar.

My confusion is whether its mandatory to transfer property to the member in his HUF capacity only ?

If yes then any judgement in the support of the same is available?

Thank you so much in advance

Upgrade to CAclubindia Pro. Subscribe Now!