I wish to switch sure shares from my elder brother’s HUF (Hindu undivided household) account to my particular person account as he’s greater than 75 years outdated now. I’m not a member of his HUF. What is the authorized process to switch these shares?
—Name withheld on request
Do observe that the curiosity of any coparcener in HUF property at any time is an undivided curiosity, which can’t be particularly decided or crystallized till a partition or dissolution happens.
An HUF could be wound up by means of its partition, which is normally finished by settlement between all its coparceners. The property belonging to the HUF could be distributed / transferred to the involved coparceners as soon as the HUF is wound up.
In your case, given that you’re not the coparcener of your elder brother’s HUF (nor the karta), you’ll not have any proper to switch the HUF property (i.e. the shares) to your account, upon its partition and winding up. Only the prevailing coparceners of your elder brother’s HUF can be entitled to its HUF property.
Given his superior age, it possibly be useful to debate the partition of the HUF with him.
On a sensible observe, topic to the industrial understanding between the events, the shares which your brother receives on account of winding up of his HUF could be transferred / gifted to you. Do search particular authorized and tax recommendation on these facets.
I’m an Indian resident and my son is a everlasting resident of Canada. I wish to switch my agricultural land to my son by means of a will. Can my son switch the returns from this land to an abroad account. What are the foundations and rules for this as per the Foreign Exchange Management Act (FEMA)?
– Name withheld on request
Your question infers that your son is a non-resident Indian (NRI) and can inherit your agricultural property submit your demise. Under the Indian trade management regime, the switch of agricultural property by means of a lifetime reward to an NRI (on this case, your son) by an individual resident in India (you) just isn’t permitted.
However, underneath the mentioned regime, an individual resident outdoors India can maintain and personal ‘any’ immovable property located in India if such property was inherited from an individual resident in India. Therefore, in your case, your NRI son can inherit the agricultural property in India – however this will solely occur after your demise.
As regards the remittance of the agricultural earnings abroad, we assume that your son has an NRO (non-resident unusual) account in India. It is price checking together with your son’s financial institution in relation to their coverage on remittance of each agricultural earnings and present earnings. If they allow the identical, it may be finished from the mentioned NRO account and can be topic to relevant remittance limits.
Furthermore, on condition that the trade management regime is intricate and gives some scope for structuring, we might advocate consulting your financial institution and your lawyer earlier than finalizing your plan.
Rishabh Shroff is accomplice & co-head, personal consumer, Cyril Amarchand Mangaldas.
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