Disslove huf
hdshardik
(Querist) 30 May 2014
This query is : Resolved
my father as a karta want to dissolve the huf business . In huf there is a warehouse of 150 sq ft . our family wants to tr this property on the name of the father i.e. (karta) of huf ?
can we do this ?
is deed it a conveyance deed?
who will pay the capital gain and stamp duty ?
what is the taxplaning available to huf in dissolve the huf completely ?
R.V.RAO
(Expert) 31 May 2014
DISSOLUTION OF huf MEANS ENTIRE ASSETS OF HUF TO BE DISTRIBUTED AMONG ALL HUF MEMBERS,no partial distribution allowed.
draw a partition deed for huf and carry out total distribuion of assets to all members of huf.
On total partition of HUF which is also called asset distribution to members, no capital gains(sec47), no gift tax (sec56), and no clubbing of income under sec 64 of IT act, as shown below:
(i) Assets distribution in the course of partition would not attract any capital gains tax.
(ii) No gift tax liability.
(iii) No clubbing of incomes u/s. 64.
prabhakar singh
(Expert) 31 May 2014
Mr.R.V.RAO is correct but as partition or dissolution involves in your case is an immovable property it would be possible only
via a registered deed and payment of stamp duty as attracted by the law of state where dissolution or partition has to take effect,and duty would be payable either by recipient of that or as agreed in the deed.
malipeddi jaggarao
(Expert) 31 May 2014
Take the clues from the advice of expert Mr.R.V.Rao for dissolution and as regards passing on the title to one of the HUF members i.e., Karta, all the remaining members can execute a regd. reliquishment deed in favour of Karta.
Rajendra K Goyal
(Expert) 31 May 2014
Immovable property would be distributed through registered deed for which stamp duty need to be paid. Agree with the experts prabhakar singh ji.
Sankaranarayanan
(Expert) 31 May 2014
i do agree with Mr rao, only the way to dissolve all then partition should be made with all HUF member and distribute among them
R.V.RAO
(Expert) 01 June 2014
thanks to sri prabhakar ji and sri jagga rao garu and thiru sankar narayanan ji.
Advocate Ravinder
(Expert) 01 June 2014
Mr. R.V.Rao has said:--
On total partition of HUF which is also called asset distribution to members, no capital gains(sec47), no gift tax (sec56), and no clubbing of income under sec 64 of IT act, as shown below:
(i) Assets distribution in the course of partition would not attract any capital gains tax.
(ii) No gift tax liability.
(iii) No clubbing of incomes u/s. 64.
But he did not say that registration is not necessary. The family has to enter into Family settlement or relinquishment deed. Unless you register the property, title will not pass on to the karta. In A.P. it is 1% of the market value.
T. Kalaiselvan, Advocate
(Expert) 01 June 2014
Agreed that subsequently the other family members can relinquish their rights and interest by executing a registered release deed, of HUF property jointly on one individual, here your father's favor. I endorse the views of expert Mr. Ravinder.
Raj Kumar Makkad
(Expert) 01 June 2014
Well advised by experts hence no more to add.
hdshardik
(Querist) 05 June 2014
for dissolution of total huf , what agreemnet is drafted for immovable property and movable property and what is it called in legal term ?
is stamp duty is payable on movable property by karta in his individual capacity?
Raj Kumar Makkad
(Expert) 05 June 2014
A suit for partition is required to be filed by ether of the members of the joint Hindu family for its dissolution. A joint declaration can also be made in this regard to help in the suit and no stamp duty is required for the partition of the joint family properties.
hdshardik
(Querist) 07 June 2014
where the suit is required to filled and to whom at which place ?
while executing the agreemnet for total dissolution of huf , and property is transferred to karta in his individual indepenednt capapcity . is it stamp duty is liable to pay by karta ?
is it any rebate available from the stamp duty act ?
Raj Kumar Makkad
(Expert) 08 June 2014
It has already been cleared to you that no stamp duty is to paid for the partition of the joint property and the suit is required to be filed wherein one of the properties is situated/located.
Raj Kumar Makkad
(Expert) 08 June 2014
Suit is required to be filed in civil court at the place where such property is located which you know better than me.
You have many times been advised that no stamp duty is required to be paid either by karta or other members of HUF.
malipeddi jaggarao
(Expert) 09 June 2014
Anyway you cannot do all these things on your own. Engnge a local lawyer or good documentary writer who can help you. We have given you the position of law and steps to be taken. Rest you have to get it locally by engaging competent person.
hdshardik
(Querist) 09 June 2014
thanks a lot all sir ........
hdshardik
(Querist) 13 June 2014
how to decide the share or interest of co-parncers when huf is dissolve completely ?
what are the basis are taken in to consider ?
is it there check list or method ?
Raj Kumar Makkad
(Expert) 13 June 2014
There is a definite formua to calculate the share of the coparceners but it requires various factors into consideration so better to avail the professional services of a local lawyer for that purpose.
hdshardik
(Querist) 25 June 2014
for execution of huf partition deed what is the stamp duty levy in Mumbai ?
is rebate is available?
T. Kalaiselvan, Advocate
(Expert) 25 June 2014
The stamp duty differs from on state to another this may be clarified from the nearest Registrar's office.
Raj Kumar Makkad
(Expert) 25 June 2014
Leave something for local lawyers otherwise you shall also start asking what is the distance from your house to the court.
