PARTITION OF HUF
DIPAK KUMAR SHANGHVI
(Querist) 29 May 2010
This query is : Resolved
HUSBAND, WIFE & 2 MARRIED DAUGHTERS CONSTITUES HUF AND ON THE DEATH OF WIFE, HUSBAND WANTS TO MAKE THE MAKE FULL PARTITION OF HIS HUF , AS HE ALSO HAS BECOME OLD AND DO NOT WANT HIS DAUGHTERS TO HAVE ANY BURDEN, AFTER HIS DEATH. KINLDY ADVISE WHAT WILL BE THE PROCEDURE -
Vineet
(Expert) 29 May 2010
Enter into a partition settlement determining the share of each member. Please ensure that partition is total in respect of each property and asset of HUF and in respect of each member as the Income Tax Act does not recognise partial partition. You may need to get this settlement approved by a competent court to avoid any stamp duty incidence (My Ld Lawyer friends will be in better position to throw light on this aspect.)
For Income Tax purposes, make an application before the assessing officer intimating the fact of total partition of HUF and the effective date thereof. The assessing officer may conuct enquiry u/s 171(2) at any time thereafter and record a finding in this regard, but for all practical purposes the respective member can start disclosing their share and income therefrom in respective individual returns.
Jagmohan Rawat
(Expert) 01 June 2010
I share the same views as explained by vineet.
