An HUF consists of a Karta , his wife , his married son and 2 daughters - 1 unmarried and 1 married . The HUF property consists of mainly 1 main Immovable Property and other movable properties like bank accounts, bonds,etc. The main Immovable House Property is shown as HUF Property but is registered in the name of the Karta and his wife (as property can be in the name of coparceners. The Karta and his wife now wish to Gift or Transfer the House Property to their only Son who looks after them and the family. But there are some legal issues attached to it wherein help is needed:
a) As per amendement to Section 56 in 2012 a member of an HUF is treated as a "relative" and thus a Gift from a member to an HUF should not attract Tax. But does the other way around also hold true i.e. An HUF is also termed as a "relative" and can gift to its member and not attract Gift Tax?
b) Is the gift of the main immovable property permissible under Hindu law as alienation of immovable property of HUF by Karta in favour of one coparcener may not be permissible ? And even the Income Tax authorities may view it as Partial Partition not permissible u/s 171 of the Act ?
c) Therefore, if that is the case , what is the remedy - whether a full partition u/s 171 of the Act will have to be done where the Karta will allocate unequal portions and the other member will renounce their rights to the immovable property and as such a share on such partition is exempt from Tax ?
d) Whether for such parition the transfer of the property in the records of the Land authorities will also have to be done prior to the passing of the order u/s 171 of the Act by the Assessing Officer or after such paritition has been rectified by the A.O. then the transfer can be mandated ?
If anyone can update or reply on these queries and if any case law on this subject is available
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