Is it safe to buy property from HUF?

Can we buy property from HUF?

6. Ld. AR forcefully argued that the property of a HUF could be held in the name of the Karta of the HUF or any member of the HUF. Therefore, property purchased in the name of any member of the HUF is eligible for claiming exemption under section 54 of the Act.

Can HUF have income from house property?

If a member transfers his self-acquired property to the HUF without receiving proper sale consideration, income from such property is not taxable in the hands of the HUF. It will continue to be taxed in the hands of the member. d. Personal income of the members cannot be treated as income of HUF.

Can we Mortgage HUF property?

1) HUF property can be mortgaged to secure legal debt for the benefit of HUF . … If loan has been sanctioned to the a HUF , then only property of the HUF can be mortgaged to secure the loan. HUF property is not accepted by bank to secure loan given to any other person.

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Can HUF transfer property to individual?

Therefore a HUF property cannot be transferred to anyone’s name at the fancies and whims or based on ever changing necessities. You all can sit in a family meeting, discuss the issues and amicably sort out the issues which law cannot provide.

Can I pay rent to HUF?

Yes, you can

It may further be noted that the HUF will be liable to pay tax on such rental income and will also get the standard deduction benefit. It is advised that the HUF should charge prevailing market rent so as to avoid any litigation by the tax department.

Can one person be Karta of 2 HUF?

Thus, it is possible a person can be Karta in two HUF. One your father’s HUF and secondly your HUF. Till your father’s HUF is partioned you can continue to be be the karta of the said HUF, if you are the eldest son otherwise the eldest son shall be the karta. So you can be karta for 2 HUFs.

Is HUF deed mandatory?

Creating a HUF Deed is not mandatory and PAN Card and Bank Account can be opened without HUF as well but it’s always better to have a written document in place.

How can I transfer property to HUF?

You can transfer the property to HUF subject to certain provisions of law, i.e., If a member of the HUF gifts a property owned by him to the HUF, then any income earned from such property shall be taxable in the hands of the individual by virtue of Section 64(2).

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Can Karta sell HUF property without consent?

In this case, taken up by Two-Judge Bench of the Supreme Court, the Court has ruled that Karta of the Family can sell share in ancestral property on account of legal necessity even without obtaining due consent of other coparceners.

How is HUF property divided?

The Hindu Undivided Family or HUF is a business form recognized only in India. Partition of a HUF results in dividing or splitting up the HUF so that the property can be divided into shares of the individual coparceners (i.e. members in the family entitled to a share) instead of being held jointly by the entire family.

What is the highest HLA loan amount that can be taken?

Maximum loan amount Rs 100 lacs, maximum finance upto 75-85% of the project cost.

Who can transfer money in HUF?

The amount so transferred by way of gift can be in the form of cash, jewellery or any movable property or also in the form of any immovable property. There is no tax on such gift if the gift is given to the HUF by the Karta or any member of the HUF. (g) from any trust or institution registered under Section 12-AA.

How do I transfer my HUF property to Karta?

Upon receiving an intimation for such partition, the karta can take steps to transfer a part of the HUF property to such coparcenary (based on his or her interest as on that date) and upon partition the said coparcenary shall cease to be a member of the HUF or have any interest to the remaining property thereof.

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Can you transfer money to HUF account?

Do not transfer your own assets or funds into the HUF, any income arising from this asset / money will be clubbed with your own income and you will be taxed on it. … If ancestral property or assets are sold, the money received on such a sale can be transferred to the HUF.