Dear Experts,
Does business transfer by HUF to its member with consideration amount to taxable income? If yes, then under which income head?
Further, if we consider it as Slump sale then will it be taxable?
How about considering it as a gift by HUF to its member?
Kindly guide about tax consequences in the hands of the HUF.
Urgent.
3 Replies
Roshni
(Studwnt)
(1141 Points)
Replied 07 August 2020
Partial transfer not taxable...if full transfer then it's taxable...taxable as business income
rama krishnan
(12239 Points)
Replied 07 August 2020
It'll be treated as slump sale and short term capital gain will charged accordingly
shaikh muhammed firoz
(doing ipcc Read more at: http://www.caclubindia.com/user_signup.asp#.VTX5idKqpBd)
(59 Points)
Replied 07 August 2020
As per section 50B, A trf of one or more undertaking (business) as a result of sale for lump sum consideration without being values being assigned to individual assets n liab on such sale.
we should consider the above scenario as Lump sum sale .
Gain on such sale depends on the period of holding by HUF.
If these assets is previously held by members and thn it is trf to HUF, ( it is not a taxable trf) .The period of Holding of members plus HUF is also be considered for computing the Gain
we should consider the above scenario as Lump sum sale .
Gain on such sale depends on the period of holding by HUF.
If these assets is previously held by members and thn it is trf to HUF, ( it is not a taxable trf) .The period of Holding of members plus HUF is also be considered for computing the Gain
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