HUF PARTITION

Here are the answers to your HUF partition tax queries:

1. TDS Refund Due for FY 2020-21 and Bank Account Closure

• Since the HUF’s bank account is closed, the refund cannot be credited directly to the HUF account.

• You can provide a letter of authority signed by all Karta and members authorizing the refund to be credited to the Karta’s personal bank account.

• Alternatively, you may request the Income Tax Department to issue the refund cheque in the name of the Karta or get the refund credited to the Karta’s bank account.

• It is advisable to communicate with the Assessing Officer or CPC for proper instructions.

2. Surrender of PAN of HUF

• The PAN of the HUF can be surrendered only after the final assessment for the period during which the HUF existed is complete.

• If you are expecting an assessment order (online or manual) from CPC or the local ITO, it’s better to wait till the assessment is finalized and refund (if any) is received.

• Once assessment is completed and returns are filed for the last relevant years, you can initiate PAN surrender.

3. Process to Surrender PAN of HUF

• File Form 49AA (Application for surrender/cancellation of PAN) on the NSDL or Income Tax portal.

• Attach necessary documents such as a copy of partition deed, copy of final ITR, and a letter requesting PAN surrender.

• After processing, the PAN will be marked as surrendered and will not be valid for future transactions.

Additional Tip:

• Keep a copy of the partition deed and communication with the tax authorities handy for smooth processing.

• Consult your jurisdictional Income Tax Officer for guidance on refund payment and PAN surrender timeline.