Can I present my rental revenue in HUF account?
I’m the karta of a Hindu Undivided Family (HUF) agency. My coparceners are my spouse and son. I’m retired and solely have rental revenue from a home inherited from my mom by way of her probated will.
Can I present my rental revenue in my HUF checking account? And, as and after I promote that home, can I present the sale proceeds within the HUF account? For this, do I must switch the home to HUF? If sure, then what’s the process? Isn’t the property robotically handled as HUF property, as I’m additionally the karta of the HUF?
What course of is required to be adopted in case the property is to be bequeathed after the demise of the testator which is as per the registered Will in Delhi after the mutation has been completed within the municipal data. It must be additional clarified whether or not the method of probate can also be to be adopted in Delhi or if a succession certification is adequate and who would concern the identical?
— Name withheld on request
We assume you’re the sole legatee/heir of the home underneath your mom’s Will. Given that the home is bequeathed to you in your particular person capability, and to not your HUF, the possession of the home will vest in you, and never within the HUF.
Therefore, the rental proceeds from the home can’t be proven as rental revenue of the HUF.
Since the possession of the home vests in you, the sale proceeds of the home can’t be proven as proceeds belonging to the HUF on account of the sale of the home by you.
Transferring the home to the HUF, and its subsequent sale from the HUF will allow you to guide the sale proceeds within the HUF.
Till such time the switch to the HUF occurs, it would proceed to be handled as your private property. Despite you being the karta of the HUF, the home won’t robotically be handled as HUF property.
As regards the method of switch of the home to HUF, provided that it’s an immovable property, the identical might be completed by way of a duly stamped and registered reward deed in favor of the HUF.
The reward acquired by the HUF won’t be handled because the revenue of the HUF.
However, any revenue arising from the home/asset transferred by a member to the HUF is topic to clubbing provisions.
Accordingly, the revenue derived from such immovable property shall be clubbed together with your revenue.
In Delhi, it isn’t necessary to acquire the probate of a Will, no matter whether or not it being registered or unregistered. Therefore, in your case, assuming that the property to be bequeathed underneath the Will is in Delhi, there will probably be no requirement for the executor of the Will to make any utility to the Delhi High Court for grant of probate, after the demise of the testator.
Rishabh Shroff is companion, Cyril Amarchand Mangaldas.
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