income tax

Technically no, but it depends on how the case is pleaded.

  I sold some agriculture land recently, which I inherited from my parents.The proceeds were deposited in our HUF Acct. I gave 1/3rd to each of my 2 sons.I took 1Lakh for myself.Rest of the amount was put in HUF FD Acct.My sons also invested the Amount in FDs. Pease clarify--

a.   Is the sale proceed taxable or exempt from I.Tax ? If exempt, should it be shown in the Exempt Income Sec of ITR ? What is the I.Tax Act Sec under which it exempt income ? Is to be shown in HUF I.Tax return or the amount given to each should be shown in respective returns? Does the sale attract Capital gain ? If so, how is to be calculated ?

b.  Will the Interest earned on FDs be individual's Income next yr or will it be HUF Income ?

c.  All of us are I.Tax assessees,have been allotted PAN & file our returns regularly. My 2 sons are NRI (citzens of USA/Australia) and have their NRO Accts.

    Will appreciate early clarifcation, so as to help me work out Adv Tax etc in time.

Bhupal Singh

   My wife is no more. She expired in 2007.

Bhupal Singh

   I am a senior citizen and an Army Pensioner.\

Bhupal Singh

partner is his individual capacity is separately assesable but recoveries can be made from him on behalf of partnership firm because partners are jointly and severally liable for any liability.

Demand on individual cannot be recovered from Firm unless the officer proves that the firm was liability to pay any sum to the concerned partner and such amount had become due. In such case also the officer has to first serve a notice u/s 226(3) on the firm and any recovery from firm without this procedure is illegal.

If the land sold by you is Agricultural Land within the definition of Income Tax Act, it is exempt from any Capital Gains Tax as the same is not a Capital Asset (Refer Clause 2(14) of Income Tax Act).

The interest on FD is taxable in the hand of indivduals. As far as HUF FD interest is concerned, the facts need to be checked whether the land was an HUF asset or individual inherited asset.