Can wife of karta blend property she received after partition of ancestral property

Others 262 views 4 replies

Dear Experts,

My client wants to create HUF with corpus. The corpus amount will be created from the share of Karta's wife in her ancestral property after partition.

In this context, my query is that:

  1. can Karta's wife blend her share (received after partition of ancestral property) into HUF?
  2. If not then please clarify how this can be treated in HUF?

Thanks

Replies (4)

1. Yes, she can.

Thanks a lot Sir for prompt clarification!!

I understand blending of Karta's wife share in HUF corpus will not be treated as Gift and also will not be taxed as gift given to HUF.

Please correct me if my understanding is not correct.

Regards

"I understand blending of Karta's wife share in HUF corpus will not be treated as Gift and also will not be taxed as gift given to HUF." It should not be, as the source is partition of ancestral property. Secondly, for HUF its members are relatives as per sec. 56(2), and hence any gift from its member is not taxable

Thanks a lot sir.


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