Table of Contents
How do I transfer property from HUF to individual?
You can transfer the property to HUF subject to certain provisions of law, i.e., If a member of the HUF gifts a property owned by him to the HUF, then any income earned from such property shall be taxable in the hands of the individual by virtue of Section 64(2).
Is HUF deed mandatory?
Creating a HUF Deed is not mandatory and PAN Card and Bank Account can be opened without HUF as well but it’s always better to have a written document in place.
How do I amend a HUF deed?
Further in the bank accounts the name can be updated. A request letter to change karta along with the death certificate and NOC from other coparceners can be filed with bank to change the karta.
Can property be registered in the name of HUF?
AR forcefully argued that the property of a HUF could be held in the name of the Karta of the HUF or any member of the HUF. Therefore, property purchased in the name of any member of the HUF is eligible for claiming exemption under section 54 of the Act.
Can member transfer property to HUF?
Yes you can create a HUF and transfer this property to HUF account. HUF is a separate entity for the purpose of assessment under the Act. Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.
Can Karta give loan to HUF?
True, any coparcener, including a Karta, can give a gift to his HUF, but it is more beneficial for him to blend. You certainly can give an interest free loan to your HUF or take a loan from the HUF, but within limits, with regard to both the loan amount and its term.
Can HUF sell property?
The Karta of the HUF has the right to sell the property in the interest of the HUF &/or its members, So, he can sell the property to your mother with the consent of all the members of the HUF, 3.
Is stamp paper required for HUF deed?
You have to prepare a deed on stamp paper declaring the formation of the HUF. Once the declaration deed is made, the karta should apply for a permanent account number (PAN) for the HUF. This is mandatory because all financial transactions must carry PAN.
How do you dissolve a HUF?
An HUF can only be dissolved after the partition of the property. For this, the family must execute a deed of partition and distribute properties amongst the members (karta and coparceners). All family members must be part of the deed.
What happens if Karta of HUF dies?
One the death of a karta, the next senior most member automatically becomes the new karta of the HUF but at times, statutory authorities may require a declaration from the members forming part of the HUF declaring the eldest coparcener as the new karta of the HUF.
Can HUF sue or be sued?
Order XXX Rule 10 of CPC also permits a HUF carrying on business under any name to sue and be sued in such name or style as if it were a firm name.
Can HUF gift property to its member?
There are no restrictions on the rights of a Karta to gift assets of the HUF to anyone under the tax laws. However, if the gift is made to a family member, the income tax department may treat this as partial partition of the HUF and disregard this for income tax purposes.