HUF
Querist :
Anonymous
(Querist) 22 November 2010
This query is : Resolved
An ancestral Land was in Balance Sheet of HUF as on March 2004
The land was given for Re Development by the karta for which an agreement was entered
On date of agreement between builder and Karta ( agreement not in name of HUF)it was agreed that the builder will allot 3 flats and even pay consideration in cash/cheque
The capital gains for the same were calculated in A.Y 2005-2006 and investment was made by HUF for exemption:
Particulars
Stamp Duty valuation
Less
Index cost of acquisition-
Capital Gains
Less: Cap Gain Tax bonds u/s 54EC
Less: Exemption as per* Property acquired as per development Agreement for self occupation (3 flats will be allotted)
*The self occupation flat valuation was done by valuer
The flats were not shown in Balance sheet of neither HUF nor individuals as the allotment of flats were not made
However the 3 flat was allotted in 20010-2011 in name of
1. Karta
2. Co Parcencer
3. Co Parcencer
Since the flats are allotted to 3 individuals and not to HUF. How can we do total partition of HUF ? How will it be done both legally and considering taxation aspect
Querry
1)How can we do total partition for this?
2)Since the land was in name of Individual and allotment of flats were also made to 3 individuals ( co parcencer) how can we show/ rectify the same.
3)Do we have to do partition deed ? If yes there is no flats /property in name of HUF and do we have to pay 2 % duty( stamp duty has been paid by individual owners)
A V Vishal
(Expert) 22 November 2010
The flats have to brought into the Balance sheet of the HUF (Even if registered in individual names), since the exemption has been claimed in the HUF returns. If it is treated as individual then the exemption granted to the HUF will go and the capital gains has to be paid on the balance amount.
Querist :
Anonymous
(Querist) 22 November 2010
Thanks
But allotment has been done in individual names
We want to do total partition of HUF
Whether we can do it ?
A V Vishal
(Expert) 22 November 2010
While seeking partition of the HUF you should treat the property registered in individual names as part of HUF and partition or alternately for amicable partition the remaining property should be valued and divided after deducting the value of the flats registered to each co-parcener.
Querist :
Anonymous
(Querist) 22 November 2010
But in case of partition do we have to settlement deed and pay 2% duty on FMV
How can we go on for process for partition
Do u or anyone can help us or provide an expert opinion for the same
Querist :
Anonymous
(Querist) 22 November 2010
My querry is
1) If we do total partition the property do we have to go for setllement deed and pay 2% stamp duty
2) Since the flats are in name of co parcencers will the assessing officer allow partition
3)How to rectify the error made
