Receipt by son on Patition of HUF whether Individual or Son's HUF property

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This query is : Resolved

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This discussion clarifies whether a son's share from a Hindu Undivided Family (HUF) partition is considered his individual property or part of his own HUF for income tax purposes. The consensus is that the son has the discretion to decide how to inherit his share, whether in his individual capacity or under his HUF, and this choice, once declared under a PAN, is final. The partition's timing, even after the father's death with the son acting as Karta, does not alter this right of choice, and there are no specific laws compelling a particular inheritance method.

Rocks Parss

Rocks Parss (Querist)
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23 July 2023 On complete or total partition of HUF of karta who had one son and one daughter whether the property after partition will belong to HUF of the son or to the son as Individual for Income tax purposes?
Will the answer change if the total partition is done few years after the death of the said (Father) Karta if during the intervening years the son was acting as the Karta?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 July 2023 1. Depends upon son whether the assets he wishes to inherit in individual capacity or under his HUF. Once declared under any PAN will not get changed.
2. No change, it is at his will.

Rocks Parss

Rocks Parss (Querist)
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23 July 2023 Many thanks Mr Dhirajlal Rambhia. So there is no compulsion as per the law whether Income tax or Hindu succession act? The son can choose whether he wants his share as his HUF or in his Individual capacity? Are there any case laws on this?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 July 2023 There is no law restricting the distribution of the shares in particular way, at the time of its complete partition.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 September 2024 Good luck.

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