Gift of huf property to coparceners

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 Dear Expert,

Can a HUF divide a property in its name among the coparceners while still continuing to exist.

Can this be done via gift? What would be the tax implications in this case?

Please advise

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

08 June 2013 For the Income-Tax purposes the property income will be considered in the hands of HUF only, as it will be treated as partial partition.
.
In the property of HUF, the coparceners also have their own individual rights. It may be a case like a person making a gift to himself. So "via gift" route should not be adopted as it may have more implications U/s 56.
.

.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now