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Huf partition

Tax queries 446 views 6 replies
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Professional
26 Points Posted on 11 June 2014

Hi everybody, Please Guide on matter relating to Partition of HUF

1. Is it necessary to divide the properties belonging to huf among co-parceners in equal proportion?

2. There are few unmatured investments in the name of HUF. How to deal with them while making Partition?

3. If unmatured investments are to held till maturity. Is it necessary to close Bank A/c's?

4. Is there any formal procedure to give effect to the Partiton?

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On 11 June 2014 at 20:23 Report
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Student as well as Self-employed
3710 Points Posted on 11 June 2014
1. it has never been mandatory to have equal partition in case of mutual partition. but where partition is done by court then court will always award equal partition.
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On 11 June 2014 at 21:24
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3710 Points Posted on 11 June 2014
2. in case of umnatured inv., there are two options. first, break those inv. and then divide among the huf. second, mention in the partition deed that the inv. will be held till maturity and upon maturity it will be divided among members of huf
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On 11 June 2014 at 21:27
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3710 Points Posted on 11 June 2014
3. on partition huf ceases to exist, therefore any a/c maintained in the name of huf should be closed.
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On 11 June 2014 at 21:29
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3710 Points Posted on 11 June 2014
4. you can call it a formal procedure or you can say it the only procedure to avoid legal complications in the future. the procedure i am talking about is that always prepare a partition deed on a stamp paper.
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On 11 June 2014 at 21:35
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Professional
26 Points Posted on 15 June 2014

so if account of the huf is closed athe time of partition, then how will the investment maturing at a later date will be encashed. i.e. in whose account?

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On 15 June 2014 at 13:51
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3710 Points Posted on 15 June 2014
the a/c shall be kept open till maturity of inv. if it is decided to partition that amount at maturity. but where it is decided to distribute such inv. at the time of partition then first inv. shall be broken before maturity and distributed then the a/c shall be closed
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On 15 June 2014 at 16:14


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