Property transfer to director,s HUF in Private company
This query is : Resolved
06 November 2008
Our company wants to transfer a property in the name of the one of the Direcotr' HUF. Accordingly company will charge nominal rent from the director's HUF. On other side HUF will earn Income from the same property.
Can any one explain the implication in Income tax or any other act for the same transaction.
Can any one explain the implication in Income tax or any other act for the same transaction.
06 November 2008
Assuming that the HUF status is accepted by IT authorities, HUF will be assessable for property income depending upon its crossing the non taxable limit.
In the case of company it will have to be assessed for Capital gain.
In the case of company it will have to be assessed for Capital gain.
06 November 2008
thanks Mr. Srinivasaraghavan
But is there any chance that Assessing officer take a view that income has been transfered from company to HUF and if it possible what couse of action A.Officer can take.
Thanks
But is there any chance that Assessing officer take a view that income has been transfered from company to HUF and if it possible what couse of action A.Officer can take.
Thanks
06 November 2008
No. In the case of sale for a full consideration such a presumption is not possible.
06 November 2008
Thanks
06 November 2008
"Accordingly company will charge nominal rent from the director's HUF"
What does it mean? After the transfer, how could the company charge rent on it? Please make ur query clear in this part
What does it mean? After the transfer, how could the company charge rent on it? Please make ur query clear in this part
07 November 2008
Dear Shailash
Sorry There is typing mistake.
The Querry was for renting of property or sale of property. But the answer is for sale of property only.
Please answer if property rented out to HUF what would be the legal implication and assumption of Assessing officer in this regard
Sorry There is typing mistake.
The Querry was for renting of property or sale of property. But the answer is for sale of property only.
Please answer if property rented out to HUF what would be the legal implication and assumption of Assessing officer in this regard
07 November 2008
It depends upon the value of transfer, acceptability of HUF to the satisfaction of the AO etc.,
07 November 2008
While renting to HUF by the company the following points to be considered u/s 40A 2(b)-payment to relatives
we can say judgement of reasonableness of payment
-copy of Rent agreement
-Amt of rent
-Basis of rent (say per sq.ft)
-Market value of rent with proof
we can say judgement of reasonableness of payment
-copy of Rent agreement
-Amt of rent
-Basis of rent (say per sq.ft)
-Market value of rent with proof
08 November 2008
thanks
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Type of Capital Gain
- LIABILITY ADJUSTMENT
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- NRI INSURANCE ADVISOR
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
