23 February 2011
There is an HUF which consists of Mr.A & Mrs.A AND their Sons B & C and their wives. HUF constructs flats and A, B & C share the flats in equal numbers
Later B transfers the flat to C’s wife as gift & similarly C to B’s wife
In the query its not clear that, whether the HUF has tansferred the ownership to the individual coparceners.
Asuming the ownership of the flats lies with the HUF and not with the individual co-parceners, ABC cannot gift the flats to their sisters in law. Hence, the income from the flats (rent or capital gains ) will have to be taxed under HUF.
24 February 2011
Sir, Assuming there happened a transfer of property due to partition of HUF, in that case the entire transaction would go untaxable, right?
CAclubindia
