Huf and its members as per deed and reality
Dhirender Wadhwa
(Querist) 28 December 2013
This query is : Resolved
sir, my father is starting an huf. we are a bit confused due to diff. opinions given.. kindly help on following
1. he doesn't want to include our sister (married now) in the huf and has left her name in the deed.. is it possible.. as my info says that all his lineage( sons & daughters) will automatically be a part of huf.
2. I have a house in my name and have rent income.. an I deposit that rent income into huf.. will the income be calculated for huf or will it still be added in my itr..
thanx
R.K Nanda
(Expert) 28 December 2013
consult tax lawyer.
prabhakar singh
(Expert) 29 December 2013
1.WHEN HUF IS CONSTITUTED BY A DEED MARRIED DAUGHTERS CAN BE DROPPED AS THEY ARE TREATED TO BE MEMBERS OF THEIR HUSBAND FAMILY.
HOWEVER IN CASE OF INTESTATE DEATH OF YOUR FATHER,SHARE OF YOUR FATHER SHALL DEVOLVE UPON HIS MARRIED DAUGHTERS ALSO.
2. INCOME THROWN IN HUF BY IT'S MEMBER WOULD BE TREATED PROPERTY OF HUF.
Dhirender Wadhwa
(Querist) 29 December 2013
thanx prabhakar ji... for Q1. and wow for the other experts...
my tax advocate says that the rent income will be taxed as my fathers income (even when my father has written the property in the name of huf)and will not be clubbed with huf..
its confusing as articles on internet also said that rent income of property in personal name can also be thrown and thus taxed at the hands of huf..
KINDLY CLARIFY...
Anirudh
(Expert) 29 December 2013
Your tax Advocate is absolutely right. If your father is transferring only the income from the property, WITHOUT TRANSFERRING THE PROPERTY TO THE TRUST, then the income from the property would be taxed only in the hands of your father. Please go through Section 60 of the Income Tax Act, 1961.
malipeddi jaggarao
(Expert) 30 December 2013
HUF is not yet formed as per your query. Where is the question for second point at this stage.
