partition
devendra prasad
(Querist) 16 January 2010
This query is : Resolved
A has acqired his property . He wants to distrbute among his family members by a partition deed with the consent of all.
Can he do so and what is legality with income tax point of view ?
B K Raghavendra Rao
(Expert) 16 January 2010
Let us presume that A has self-acquired the immovable property. A is legally liable to distribute the property of which he is the absolute owner. If he has to distribute the property among his family members, (a) he may execute a Will to that effect which takes effect after A's death (b)gift the property to individual family members if division is possible or gift them collectively if division is not possible.
If A had purchased the property with financial contribution from the family members, he may execute a family settlement deed.
He is answerable to the income-tax department only for the income of the fund he invested in purchasing the immovable property. There is no incidence of income tax either on those beneficiaries of his will or the donees who receive the property as gift.
