17 December 2013
please somebody clarify my doubt regarding as mentioned below: HUF having 3 members i.e one karta and 2 of its members. now one property is being sold and payment received by one of its member. also that member distributed some amount in equal proportion to each member. now in whose hands capital gains shall arise, i.e whether in hands of HUF or in hands of members individually?
21 December 2013
Thanks Mr Tushar. Lets make it little more complicated which is as follows: There was a property under the name as KD(HUF). Now the partial partition took place in 1977 u/s 171 of I.T.Act as it was allowed at that time. From that consideration a property was purchased by Mr G. Now in 1996 Mr G died & due to ignorance of the fact about property, Mr M started showing that property and rental income from that property as Mr G(HUF). Since then all rental income, I.T Refunds etc has been shown in income of MrG(HUF). Now that property also has been sold out in 2013. Purchaser issued cheques in favour of Mrs G as he thinks that property is being shown wrongly as Mr G(HUF) by Mr M. Now in whose hands it would be taxable, either in hands of Mrs G or in hands of Mr G(HUF). [Also as mentioned in previous query Mrs G had distributed sale consideration in equal proportion to Mr M(karta) and Mrs R (married daughter of Mr G)].
21 December 2013
If it was shown as property in hands of huf then its taxable in huf's hand only as rental income and refund of it was shown as huf income only.
CAclubindia
