In my HUF account I’ve numerous property together with listed shares of Rs.25 lakhs market worth, 2 lakhs in checking account and 10 lakhs as advances given to a agency. I’ve two married sons and one married daughter. After My dying how the shares get transferred to my sons’ account, and what concerning the different property? Or will or not it’s higher if I dissolve my HUF now itself and distribute all of the property amongst my sons.
Answer: HUF is a definite authorized entity and may personal property in its identify. Thus the property in HUF doesn’t belong to you completely however belongs to all of the members of the HUF collectively. Prior to alter in Hindu Succession Act in 2005 the daughters weren’t handled as coparcener. However, with the modification of Section 6 of Hindu Succession Act, a daughter now has equal rights as that of a son within the HUF property. So in case you need to distribute the property of your HUF, your married daughter can have equal proper as that of your sons and he or she is entitled to equal shares within the HUF property whether it is partitioned. The share which all coparceners get on partition of the HUF needs to be equal, nonetheless with the consent of all of the coparcener the distribution might be unequal and even among the coparceners can forgo their declare within the HUF property.
The legislation to succession to HUF property has additionally been amended in 2005. Earlier the HUF property would devolve by survivorship however now the share of particular person coparcener will move on to the authorized heirs of the deceased after his dying. After your dying, your share within the HUF property will go to your authorized heirs as per order prescribed in Schedule to of the Hindu Succession Act. You can determine to bequeath your share within the HUF property by a will however can’t present away your shares within the property while you’re alive. The remaining property shall proceed to stay in HUF. Your HUF can proceed even after your dying and your elder son will turn into Karta of the HUF.
So underneath totally different situation as to how the HUF property would devolve on the dying of a coparcener, you possibly can determine which course of actions fits you. If you need to partition the property of the HUF, you’ll have to make a full partition and get an order from the revenue tax officer for such partition. Partial partition shouldn’t be acknowledged underneath the revenue tax legal guidelines. The property acquired on partition shouldn’t be handled as revenue and is exempt underneath Section 10 of the Act.
Balwant Jain is a tax and funding knowledgeable and might be reached on [email protected] and @jainbalwant on Twitter.
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