income to be assessed in whose hands,Huf or individual?

Save Share

This query is : Resolved

vijay (Querist)

12 February 2009 hello, i have a querry, my assessee,has sold an agri. land (Rural,ancestral) due to ignorance he deposited sales proceed in his wife's bank a/c, and earning huge fd interest on it,what i feel is, since the money is HUF money, and should have been assessed in huf's hand,but AO says since u have not signed the sale deed in huf's capacity and the money is also not kept in huf's a/c it will not be treated as huf fund and will be taxed in the hands of a'ee's wife,as money is in her hands now, however if it is treated as huf money it will not be taxable up to basic limit of Rs. 150000/-and in true sence it is huf money only, please help, i have to file the return accordingly. Thanks

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

12 February 2009 Question to decide in whose balance sheet was the land shown as an asset?

vijay

vijay (Querist)

12 February 2009 thanks Nitinji for repling,but the assessee does not prepare balance sheet as there was only asset as ancestral one, can we make it & keet it for record purpose? (2)what about the money kept in wife's a/c and taxability of interest? pl advise

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

13 February 2009 Who is shown as seller/vendor in the sale deed?

vijay

vijay (Querist)

16 February 2009 the seller is shown as individual, due to ignorance of law he has signed as indivdual and not as karta of HUF but in saledeed it is mentioned that the agricultural land is ancestral land, pl advise

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