Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Division of immovable asset held under individual huf

Tax queries 222 views 3 replies

SamSue

Partner

64 Points Posted on 30 August 2016

Hello All!

When there are a cople of properties (land) registered in the name of an individual in HUF status and he wants to divide them amongsts his brothers and himself. Post division the property should be registered in individual status (Not in HUF).

I would appreciate your inputs regarding:

1. Is this above-mentioned process possible and/or allowed?

2. If yes, what are the tax implications for the individual owning the porperties in HUF status and post the division?

3. Any other steps that he should be aware

Thanks,

Sam Sue

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 30 August 2016

He cannot divide HUF property among his brothers, as his brothers are not co-parceners of his huf. Is he Karta of his Father's huf? and do the properties belong to his father's huf?

SamSue

Partner

64 Points Posted on 30 August 2016

Thanks Mr. Rambhia,.

For the last two questions you raised, the answer is No.

However, he is the kartha of his own HUF.

If he still wants to pursue the Property division, what are the options available for him. Kindly advise. Thanks.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 30 August 2016

No other option but partition of HUF and divide the property amongst the co-parceners. i.e. himself, wife and his children. No tax liability of partitioned capital receipts in the hands of the individuals.