HUF

Whether Benefits of Section 23(2) Availabe To HUF?

Income Tax - It is not a question whether it is Section 23(2) of the Income Tax Act or Section 7(4) of the Wealth Tax Act, the provisions being similar, the interpretation will be the same. The Division Bench of this Court having held that similar benefit is available to HUF, irrespective of decision of other High Court with regard to partnership firm...

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Gift From HUF – Whether Capital Receipt In the Hand of Member?

Income Tax - A member of the ‘HUF’ has a pre-existing right in the family properties. A Coparcener has a pre-existing right and interest in the property and can demand partition also, however, the other members of the ‘HUF’ have right to be maintained out of the ‘HUF’ property. On division, the share in the estate/capital of the ‘HUF’ ...

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Whether A Karta Will Be Taxable In Dual Capacity After Separation From HUF

Income Tax - Whether a person will be taxable under dual capacity as an ‘Individual’ as well as ‘Karta’ after separation from HUF? In this article we are going to discuss an interesting situation and taxability of an individual after his separation from HUF. PROBLEM: Mr. P, is a member of a prosperous HUF, went abroad for his […]...

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How to determine residential status & different residential statuses

Income Tax - The tax structure of India is very complex in nature. It depends upon the nature of persons, age, residential status, nature of income etc. The taxability of an assessee in India depends upon his residential status in India for any particular financial year. An individual may be a citizen of India but may end up […]...

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Impact of Uniform Civil Code on HUF as an income tax Unit

Income Tax - Impact of Uniform Civil Code (UCC)  on Hindu Undivided Family (HUF) as an income tax Unit There is growing demand for implementation of Uniform Civil Code (UCC) in India. In addition to other implications, it will also impact the concept of Hindu Undivided Family as an income tax unit. I thought of writing about its […]...

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Affidavit must for gift in kind, over Rs. 50,000, from relatives

Income Tax - From now on, when you get a gift in kind, valued at more than Rs. 50,000, from your parents or other relatives, make sure you have a sworn affidavit declaring the donor your kin.The Central Board of Direct Taxes has ruled that any such gift will be taxable for the donee unless it is from relatives or given during occasions such as marriag...

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Revised procedure for acceptance of address proof alongwith PAN application

Income Tax - While accepting “Application for allotment of PAN (Form 49A)” if both the addresses (residence and office) are mentioned in the application form and office address has been selected as communication address, then POA has to be collected for residence as well as office address....

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Post Office Deposit now Eligible for Deduction Under Section 80C

Income Tax - Section 80C of the Income-tax Act provides for a deduction of up to Rs. One lakh to an individual or a Hindu undivided family (HUF) for:- (i) making investments in certain savings instruments; or (ii) incurring expenditure on tuition fee and repayment of housing loan. ...

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ITAT deletes addition for Amount given by HUF to Member & Held that same cannot be treated as GIFT

Gyanchand M. Bardia Vs ITO (ITAT Ahmedabad) - As per the Hindu Law every member of HUF has a pre-existing right in the property of the HUF and any amount given to a member therefore from the HUF property tantamounts to only giving him what actually belonged to him and there is no question therefore of the same being any amount given for no cons...

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Assessment on HUF not valid if HUF was not in existence

K. Ramesh Reddy, HUF Vs ACIT (ITAT Bangalore) - K. Ramesh Reddy Vs ACIT (ITAT Bangalore) In this case on 30.11.2006, when the assessment was made, the HUF was not in existence. In such a case, the procedure prescribed under Section 171  will have no application as the assessee was not hitherto assessed as HUF and so, the fiction created under th...

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Mere partition between joint family members cannot terminate HUF status

Sri. A.P. Oree Vs ITO (Madras High Court) - Sri. A.P. Oree Vs ITO (Madras High Court) Any partition between the members of the joint family   cannot terminate the status of HUF unless it is shown that the joint family property was physically divided in accordance with the agreement or decree of the court.  It is the contention of the Income...

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Section 147 Assessment order passed on Individual for Property of HUF liable to be quashed

Alugaddala Kistaiah Pandu Vs ITO (ITAT Hyderabad) - The property was conveyed to assessee after the death of his father in 1955, i.e. before coming into force of Hindu Succession Act, 1950. Accordingly, the property belonged to HUF of assessee and not to assessee-individual. Therefore, the assessment order passed under section 147 for difference in s...

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Inability to reply email notices due to computer illiteracy is genuine reason

B. M. Sarin Vs ACIT (ITAT Delhi) - In the given case, the Karta of the HUF, Mr. BM Sarin is more than 70 years old and has closed his business. The notices were sent through emails but the assessee being a senior citizen could not look into those emails....

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Public Provident Fund Scheme, 1968 Amendment to Section 9(3) of Scheme

RBI/2010-11/344 DGBA. CDD. No. H-4311/15.02.001/2010-11 - (27/12/2010) - Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be ...

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CBDT notifies mandatory e-filing of return with digital signature for companies

Notification No. 49/2010-Income Tax - (09/07/2010) - Notification No. 49/2010-Income Tax In a recent Notification No. 49/2010 dated 9 July 2010 (Notification) issued by the Central Board of Direct Taxes, modifying the permitted modes of filing return of income (ROI) for (i) companies and (ii) individuals and Hindu Undivided Families (HUF) which are li...

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Gifts of property (gifts-in-kind) above value of rs.50,000 become taxable from 1st October 2009

PRESS RELEASE No.402/92/2006-MC - (30/09/2009) - The Income Tax Act 1961 (the Act) has been amended with effect from 1st October 2009 to provide that any gift-in-kind, being an immovable property or any other property, the value of which exceeds Rs.50,000 (rupees fifty thousand), will become taxable in the hands of the donee, being an individual o...

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Recent Posts in "HUF"

ITAT deletes addition for Amount given by HUF to Member & Held that same cannot be treated as GIFT

Gyanchand M. Bardia Vs ITO (ITAT Ahmedabad)

As per the Hindu Law every member of HUF has a pre-existing right in the property of the HUF and any amount given to a member therefore from the HUF property tantamounts to only giving him what actually belonged to him and there is no question therefore of the same being any amount given for no consideration or in the nature of gift, whic...

Read More

Whether Benefits of Section 23(2) Availabe To HUF?

It is not a question whether it is Section 23(2) of the Income Tax Act or Section 7(4) of the Wealth Tax Act, the provisions being similar, the interpretation will be the same. The Division Bench of this Court having held that similar benefit is available to HUF, irrespective of decision of other High Court with regard to partnership firm...

Read More
Posted Under: Income Tax |

Gift From HUF – Whether Capital Receipt In the Hand of Member?

A member of the ‘HUF’ has a pre-existing right in the family properties. A Coparcener has a pre-existing right and interest in the property and can demand partition also, however, the other members of the ‘HUF’ have right to be maintained out of the ‘HUF’ property. On division, the share in the estate/capital of the ‘HUF’ ...

Read More
Posted Under: Income Tax |

Whether A Karta Will Be Taxable In Dual Capacity After Separation From HUF

Whether a person will be taxable under dual capacity as an ‘Individual’ as well as ‘Karta’ after separation from HUF? In this article we are going to discuss an interesting situation and taxability of an individual after his separation from HUF. PROBLEM: Mr. P, is a member of a prosperous HUF, went abroad for his […]...

Read More
Posted Under: Income Tax |

How to determine residential status & different residential statuses

The tax structure of India is very complex in nature. It depends upon the nature of persons, age, residential status, nature of income etc. The taxability of an assessee in India depends upon his residential status in India for any particular financial year. An individual may be a citizen of India but may end up […]...

Read More
Posted Under: Income Tax |

Assessment on HUF not valid if HUF was not in existence

K. Ramesh Reddy, HUF Vs ACIT (ITAT Bangalore)

K. Ramesh Reddy Vs ACIT (ITAT Bangalore) In this case on 30.11.2006, when the assessment was made, the HUF was not in existence. In such a case, the procedure prescribed under Section 171  will have no application as the assessee was not hitherto assessed as HUF and so, the fiction created under that section to […]...

Read More

Impact of Uniform Civil Code on HUF as an income tax Unit

Impact of Uniform Civil Code (UCC)  on Hindu Undivided Family (HUF) as an income tax Unit There is growing demand for implementation of Uniform Civil Code (UCC) in India. In addition to other implications, it will also impact the concept of Hindu Undivided Family as an income tax unit. I thought of writing about its […]...

Read More
Posted Under: Income Tax |

Law relating to partition of HUF

HUF (Hindu Undivided family) is peculiar concept under Hindu Law which is not prevalent in any other religion. All the assets of an HUF are owned collectively by all the members. As the share of each of the members in the HUF assets fluctuates with death and birth in the family, no member can predicate […]...

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Posted Under: Income Tax |

Rights of a Hindu daughter in property

Hindu law is derived from old scriptures and has developed over the years with judicial pronouncements. Some of the laws applicable to Hindu have been codified in 1956 with passing of legislations like Hindu Marriage Act, Hindu Succession Act, 1956, Hindu Adoption an maintenance Act and Hindu Minority and Guardian ship Act. The most impor...

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Posted Under: Income Tax | ,

ITR Forms applicable for individuals for AY 2021-2022

Recently, the Central Board of Direct Taxes (CBDT) in April 2021 notified new ITR forms for the financial year 2021-2022. Later in May 2021, they extended the timeline for submitting direct tax compliances for the current financial year.   In India, every individual has to file for income tax returns i.e. ITR in every financial year. [&...

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Posted Under: Income Tax |

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