Property under huf
aman
(Querist) 02 July 2024
This query is : Resolved
I have made HUF for taxation purpose ..I have multiple properties from which I get rental income and I am salaried also..
My question is-
1) In one of my property there is some issue regarding roof rights with my brother so if I made rent agreements in the name of HUF and take rent in HUF bank account is there any chance that I will face any legal title-ship problem if we go to court in future for roof rights issue ..
2) Can I make agreement in the name of HUF for selective property and make agreement of that disputed property in my own name ..?
These properties are registered in my single name and not transferring any property to HUF ..I have made HUF just for taxation purpose..
T. Kalaiselvan, Advocate
(Expert) 02 July 2024
The same tax slabs are applicable to HUF as to individual assesse. You cannot transfer your own assets/money into HUF. If you have ancestral property and earning some income from this property, then it is better to transfer this asset to HUF and save tax up to exemption limit applicable to individual.
You cant transfer the rental income to Huf due to the clubbing provisions. it will be taxes in your hands only.
For showing the rental income in HUF account you have to transfer the property to HUF by a registered deed.
Till such time the transfer to the HUF happens, it will continue to be treated as your personal property. Despite you being the karta of the HUF, the house will not automatically be treated as HUF property.
As regards the process of transfer of the house to HUF, given that it is an immovable property, the same can be done through a duly stamped and registered gift deed in favor of the HUF.
The gift received by the HUF will not be treated as the income of the HUF.
However, any income arising from the house/asset transferred by a member to the HUF is subject to clubbing provisions.
Accordingly, the income derived from such immovable property shall be clubbed with your income.
