taxation status

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shiv nandan puri (Querist)
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15 January 2010 [14-01-2010 20:50:12] shiv nandan puri: My late father holds a commercial property in his individual name. Ever since his death in 1998 I have been leasing the property in the huf title of my father since my old CA had advised me to as he had in a previous scrutiny stated it was huf property. the returns of income reflecting the rents were sometimes in his individual capacity and sometimes in huf.
My father was a widower and died intestate leaving 2 children my elder sister and myself. My father had bought this property from his pension amounts the details of which were given to the IT then and are with me.
I have since obtained a succession certificate in my individual name from court after last year my sister relinquished her share in the property on advise from the builders advocate stating that by law it is necessary to obtain this now even in case of immovables.
I have received the payment by cheque for the sale proceeds of this property by the buyer in my individual name which I deposit on Monday! Accordingly I shall be purchasing another leased commercial property in another building from this same individual account,the income of which shall begin reflecting in that account. Since there shall be no income in the huf account what will be the status of my huf return and can this be disbanded. I have in a previous scrutiny in huf declared the property as huf.
I mention here that I am a single member huf and I have a daughter who is 18 years old. My wife and I separated 12 years ago and has since gone her own way.
I have taken the above step to uncomplicate my (the buyer wanted a clear title) life and intend to will my new property to my only child my daughter.

What will be the income tax status (capital gains etc. (property acquired prior to 1-1-1981!)

Please advise soon.

Sambu Suresh

Sambu Suresh (Expert)
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15 January 2010 Basically you have sold the property In the capacity of HUF. you have obtained the sucession certificate means the property is in your name. means not in the name of the HUF. as it was bought before 1981. it is Long term capital gain. the Indexataion start as 100. compute the LTCG and then pay the tax. Remember that the property was moved to in your name.

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