Income tax, huf property held by member

YATIN (Querist) 29 November 2020 This query is : Resolved
Sir
Unlike income tax act, HUF as a person does not have judicial status when immovable property is to be held. Accordingly I plan to purchase property from HUF fund but in my name & PAN in sale deed as well as title document. When I sale this property, whose title records will have my name and my PAN, AIR information in my ITR will have mention of this property. However the capital gains will reflect in HUF income tax returns. Thus though my ITR will have details of this sale transaction in AIR, it will not have any capital gains shown in my ITR while HUF ITR will have capital gains narration but no information in AIR.
What could be consequence of this discrepancy and how do I set this right?

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Quick Summary

This discussion explores the complexities of holding immovable property purchased with HUF funds. The core issue is how to correctly register the property and report capital gains when it's bought in an individual's name but funded by the HUF. Discrepancies arise between individual and HUF tax returns regarding AIR information and capital gains reporting, potentially leading to complications. Professional advice is recommended to ensure correct PAN usage and title documentation for both purchase and sale.

Isaac Gabriel (Expert) 29 November 2020
Better get clarification from the CA Club.

P. Venu (Expert) 30 November 2020
The matter requires professional consultation.

Rajendra K Goyal (Expert) 04 December 2020
If you have purchased the property from HUF funds, the PAN of HUF need to be given at the time of purchase. If borrowed funds from HUF and purchased in your name, HUF has nothing to do with the deal.

At the time of sale, if property exists in the name of HUF, its PAN need to be quoted as seller's otherwise yours would be shown.

Karta of HUF and Karta in person are separate, both should have separate PAN.

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