Income tax in India for Hindu Undivided Families HUFs
Definition
- HUF includes those persons who acquired by birth an interest in joint family property.
A family consists of all persons lineally descended from a common ancestor and include their wives and unmarried daughters.
- A son can have smaller HUF with his wife and children, while he continues to be a member of his father's HUF. In his father's HUF, he is mere a member, and his own, he is a karta.
Question: Property owned by HUF
There is a HUF consisting of 6 members; The HUF owns a property. It wants to partition the HUF and sell off the property. Is it advisable to partition, then sell the property and then the individual members should reinvest in a residential property to save capital gains u/s 54. Are there any case laws? where is the partition deed to be registered? Is the money received on sale of property to be parked in a partcular kind of account? Or would it be advisable for the HUF to sell the property; then reinvest in another property (which can be easily partioned) to save capital gains and then carry out the actual partition. Pl. advise. Regards, Kanwal(Via mail)
ANSWER: THE RULE FOR LONG TERM CAPITAL GAIN IS VERY MUCH CLEAR FOR OWNING THE PROPERTY FOR MINIMUM 36 MONTHS. ON PARTITION THE PROPERTY IN THE HANDS OF INDIVIDUAL SHALL BE LESS THAN 36 MONTHS. yOU HAVE TO PREPARE A PARTITION DEED AND GET IT REGISTERED. ALL THESE SERVICES AND OTHER ADVISE IS AVAILABLE ON PAYMENT. ssunderagarwal@sify.com
edesk note
It is suggested that one signs up free for www.edeskonline.com
See also
- View a full fledged demo on eDeskOnline
- Taxation in India
- Income tax in India
- Permanent account number for Income tax in India
- Income tax in India for Individuals
- Income tax in India for Partnership Firms
- Income tax in India for Corporates
- Income tax in India for Hindu Undivided Families _ HUFs
- TDS Tax Deducted at Source Indian Income Tax
- My eTax Profile.
- Capital Account
- Capital gain
- Capital gains tax
- Stt on capital Gains
- Capital Gains (India)
- Advance Income tax in India
- Guide to filing tax returns
- Income Tax FAQs
- Income tax in India
