HUF property
tamilarasibabu
(Querist) 11 December 2008
This query is : Resolved
Can HUF property be transfered to one of its member with the consent of the other members? kindly suggest the preferable method of transfer and the stamp duty payable kinsly provide the appropriate provision of law
Prakash Yedhula
(Expert) 11 December 2008
Although it is possible for a member of the HUF to transfer his or her individual assets to the HUF, such a transfer isn't beneficial from the tax point of view. This is because there is no transfer of the tax liability on the income from such assets. The income would continue to be taxed in the hands of the individual who has transferred the assets, due to the tax provisions governing the clubbing of such income with the income of the transferor.
In so far as the nature of transfer, it can be by way of a settlement deed and the rate of stamp duty depends on the State, where the property is siutate
G. ARAVINTHAN
(Expert) 12 December 2008
I agree With Mr.Prakash that the consent of all other members of HUF is necessary
J K Agrawal
(Expert) 13 December 2008
A transfer by way of sale/gift is subject to very high stamp duty which is differ in each state. Comparatively very less stamp duty (like rupees 100/- only) is chargeable in case of relinquishment deed.
