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Huf creation through ancentral property

chandraveer singh chundawat (student) (37 Points)

10 May 2017

CAN A PERSON WHO HAS INHERITED AGRICULUTRAL PROPERTY AND REGISTERED IN HIS NAME WITH REGISTRATION & STAMP DEPTT. CAN BE TRANSFERED TO HUF?

If Yes, Then whether he is required to change the name with registration & stamps Deptt. in his huf name after blending that inherited property to huf?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 10 May 2017

Yes, you can transfer now and registration with stamp duty will be applicable as per state rules. Also, check the clubbing provision, when you transfer your property to HUF hotpotch!!

As per section 64(2), when an individual, being a member of HUF, transfers his property to the HUF otherwise than for adequate consideration or converts his property into the property belonging to the HUF (it is done by impressing such property with the character of joint family property or throwing such property into the common stock of the family), then clubbing provisions will apply as follows:

Before partition of the HUF, entire income from such property will be clubbed with the income of transferor.

After partition of the HUF, such property is distributed amongst the members of the family. In such a case income derived from such property by the spouse of the transferor will be clubbed with the income of the individual and will be charged to tax in his hands.

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