Akash Mathur 04 October 2017
We have two Immovable property in my Father's HUF name, we have following members in our HUF - Father, Mother, Eleder Brother (married with two children) and Me (married with one child). we are a happy joint family with NO dispute.
For the purpose of Mortgage with Bank and Banking limits for our business we want to change the title of property from HUF to my father's Name (KARTA of HUF), (As banks do not accept property with HUF title as per the latest guidline of RBI),
Request to please tell us the Detailed process of converting the title, Stamp duty implecation and Tax implecation on each member.
URGENT MATTER for us please advice
Dhirajlal Rambhia (KVO Merau Kutchh) 05 October 2017
1. In normal conditions HUF cannot gift any asset to any of its members........
2. HUF can sell/transfer its property to anyone including its member, but that would be not feasible in your case....
3. Partial partition or complete dissolution of HUF seems to be option available, for that you may contact any local tax expert or CA for its complete analysis....
4. OR Some pvt. financers provide LAP ....... better check that option..
Akash Mathur 09 October 2017
Dear Sir, We are ready to do full Partition/Dissolution of HUF, but please confirm that - in that Partition deed can we allot full property to My father and all other can relinquishment their share in his name without any consideration (HUF has only one property in its name and no other movable or immoveable assets or income). what will be tax implication on each member.
Dhirajlal Rambhia (KVO Merau Kutchh) 09 October 2017
Yes, At the time of dissolution of HUF................ the co-parcener/s can give up his/their rights in HUF property in favour of any other member/s of the HUF by registered relinquishment deed......... without any tax liability over any of them.
Prakash Kochar (Tax Practitioner) 13 January 2019
Under income Tax there will be no tax liability if partial or complete unequal partition is effected. To save stamp duty if other assets like gold ornaments with house property is partitioned among the members then value of larger portion will be excluded for stamp duty purpose.