Transfer of property by karta to HUF

[Rajat Gupta]

If a Property has been transferred by Karta to HUF, will rental income from property be taxable in the hands of HUF? 

[FCA Adv amit aggarwal]

Yes, through making an HUF burden of tax liability can be reduce in every aspect.

AI Summary

HUF taxation on rental income from property transferred by karta remains the central issue in this tax discussion. Transfer of property by a karta to a Hindu Undivided Family raises the issue whether rental income from such property is taxable in the hands of the HUF. The discussion notes the view that, where the property is transferred into the HUF structure, the corresponding rental income is treated as HUF income for tax purposes. The reply also indicates that using the HUF as the taxable entity may reduce the overall tax burden.