Huf related capital gain

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2013 Dear Netizens , The query is regarding the claim of exemption under section 54 in the case of the HUF.

An ancestral house is sold by a person on his name situated in a Village. The sale proceeds is received through an account payee cheque in the name of his two sons.

Can the person who sold the House claims that it is a partition of HUF but no PAN no is allotted to the person in capacity f karta.

Is any capital gain provisions attract to said persons or his sons.????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 January 2013 Without a documentary evidence, things can be talked about easily, but practically one has to plan the affairs.
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The best he can do is , claim that the house sold was of HUF property and in such a case HUF is Liable for capital gains.
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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2013 Bafna Sir will you please make a bit clear about what type of documentary evidence you mentioned in your reply.

is it possible that HUF now apply for PAN.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

31 January 2013 The ancestral property can be shown as HUF property and it is possible to apply for HUF PAN.
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In the HUF file the said property as well as other assets can be shown and it is better to continue the HUF in spite of effecting immediate partition. Partial Partition of HUF is not recognised in the Income Tax Act.
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So, the amount advanced to the sons can be shown as loan extended by the HUF.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

27 July 2013 No need for any PAN just engage a good CA and ask him to prepare deed of family settlement and get it registered through which the 2 sons can get the money and show in their HUF a/c and accordingly the capital gain can be paid by both the HUF in that case you have to apply for PAN of HUF of 2 sons.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)