24 December 2021
IN MY HUF my two daughters are CO PERSONS AND BOTH ARE married, MY AGE IS 67 and HUF ACCOUNT I have ONLY SHARES.AND SMALL AMOUNT OF CASH only, which VALUED RS. 1.5 CORE i WANTED TO CLOSE MY BUSINESS.i WANTED TO GIVE MY ALL FUNDS TO MY SISTER AND HIS only SON AS SHE HELPED ME LOT AND MY TO MARRIED DAUGHERS. DO I HAVE TO CLOSE HUF AND TAKE CAPITAL IN MY PERSONAL ACCOUNT?
24 December 2021
You need to first close the HUF with complete partition of its assets among the existing coparceners. After that give the amount as gift to the relatives, provided your daughters agree to it.
24 December 2021
Closing HUF cannot be your sole decision. You need consent of other coparceners. If it is registered as an assessee, you need to intimate ITO too regarding the partition.
26 December 2021
Mr. RAMBHIA, Thanks for your reply My two daughters are married and one is settled in USA and anther one in Mumbai, both do not any money from this HUF account. They do not have any objection More i do not have any SON. In USA if she get she has to pay 26% taxes. In such case can I take whole amount in my caqpital account make part patrician Thank you Very much for your guidance,.
26 December 2021
Partial Partition of HUF is not recognized under IT act. Secondly, you yourself cannot get away with major share in HUF. For that, under the said favorable conditions, go for Complete Partition Deed. It need not be registered. Due to expenses incurred during marriage, daughters can settle for smaller amount of share in the HUF. Contact local legal advisor to finally close the HUF account permanently.
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