Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Merging of earned property into huf

Save Share

This query is : Resolved

Mohinder singh (Querist)

12 July 2012 i purchased an old house in 2004 from my savings. Now i want to demolish the structure and merge the vacant plot into HUF. ( I have HUF a/c and PAN card. HUF parceners are my two sons and my wife me being karta. ) My both sons will bring the money required for new construction.
My question is
1.if i declare on stamp paper and notarised it to merge my vacant plot as HUF property is sufficient or registration is required?
2.whether money brought in by my sons will be treated as income of HUF and taxed in the hand of HUF.
3 rented income of new house will be taxed in whose hand.

Hitendra Jain

Hitendra Jain (Expert)

12 July 2012 As far as registration is concerned it will be treated under the stamp act of the state where house is situated.
Money brought by son / sons is not income of the HUF subject to son must be the member of HUF. Else money shall be treated as income u/s 56 (1) (vii).
Rental Income shall be treated as income in the hands of:
Transferor if transfer made without adequate consideration.
HUF if transfer made with adequate consideration to the transferor.
Ref: Sec 64(2).

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