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.
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.
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.
CAclubindia
