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

Others 328 views 4 replies

Niranjan Shah

Accountant

25 Points Posted on 04 March 2019

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:

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

Thanks

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 04 March 2019

1. Yes, she can.

Niranjan Shah

Accountant

25 Points Posted on 04 March 2019

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

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 05 March 2019

"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