gift of huf property
akash
(Querist) 29 September 2010
This query is : Resolved
Respected Sir/Madam,
we have a huf file.we are three members of huf,myself,mother and elder sister(not married). myself(akash jindal) is the karta of huf.there is one land in the name of my mother(sharmila jindal)which we purchased 5 years back and showed in the Huf file.the land is shown as assets in huf file.
now my mother wants to gift half of the land to me being her son.the value of land is above 25 lacs. i have my own income tax file and wants to receive the land and show it in my individual file.also my sister is ready to give n.o.c. to this effect.
the question arises whether she is allowed to gift the huf property to me as an seperate assessee.what could be the tax liabilities and whether this will be treated as partition of huf.
which act and sections covers the above mater.
thanking you
R.Ramachandran
(Expert) 29 September 2010
Dear Mr. Akash,
You say that you have an HUF and that HUF out of its funds has purchased a property in the name of your mother who is a member of the HUF. Though the property is in the name of your mother, yet it is an HUF property and not an individual property. In the HUF, all the members have interest but not any definite share unless partitioned.
Therefore, there is nothing called your mother's individual property (it is only in the common pool of the HUF property). As such, your mother does not have any independent ownership of the property, and as such the question of giving 50% in gift to any one does not at all arise.
Yes, if proper partition takes place and the property of the HUF is divided, and if your mother gifts any of the property that falls to her share consequent to that partition, that is a different matter.
In the fact situation narrated by you, your mother does not have any independent right over the land in question and she cannot gift it to you. The consent of your elder sister is of no help.
akash
(Querist) 01 October 2010
thank you sir for your guidance
thanks a lot
