22 October 2008
Hi all, My family has 6 demat accounts and all accounts have certain shares,which we held as investments. We have another demat account in the name of our HUF. So can we transfer all the shares of 6 demat accounts to our HUF account? If yes, what will be the transfer price in the books of accounts and cost of the shares in the book of HUF? We are planning to trade in eqities in the name of HUF. What will be tax impact?
23 October 2008
The transfer of shares from individual to HUF without adequate consideration will not make the shares as HUF property as far as Income tax Act is concerned. The income will be continued to be assessed as Individual only.
23 October 2008
Thank you very much sir.. But how to determine the profit of individual account? and how to show it in individual's income? Whether it will beneficial to do so or shall we continue individual account? and last what wil be treatment of dividend in case of transfer to HUF?
CAclubindia
