Transfer of property to huf from individual

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 March 2014 If an individual gifts a property to HUF , which he purchased with the sale proceeds of an immovable property which he got through inheritance, what are the tax implications and do clubbing provisions apply ?

TKKKKKK

TKKKKKK (Expert)
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17 March 2014 transfer of property without consideration to unknown person attracts tax. For immovable property, it is stamp duty value of property.

Income from that property will be taxable as the income of transferor.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 1. Gift is exempt from capital gain as per Section 47.

2. Gifts received from relatives is NOT taxable as income u/s 56(2)(vii).

The definition of relative for HUF includes any member of the HUF.

If the gift has been received from a member, then it is NOT taxable.

If it has been received from any other person then it is taxable in the hands of the HUF. The stamp duty value shall be the amount taxable.

3. If a member of the HUF gifts a property owned by him to the HUF, then any income earned from such property shall be taxable in the hands of the individual by virtue of Section 64(2).

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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2014 Thank you,
the reply given by you is useful to me.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 March 2014 You are welcome. You should use the thanks button to convey your thanks.

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