HUF Related

[M Saran]

Is it possible that an Huf sells a ancestral house and the receive the amount in the names of HUF members in their Bank accounts.....

 

Is the Cap Gain taxable in the hands of member?????

 

Do we assume it as partion of HUF or not????

Warm Regards

M Saran               

[Rama Krishana]

As long as no partition of HUF took place, the sale proceeds of house which belong to HUF is taxable in the hands of HUF only. Mere receipt of amount in the account held in the name of any member of HUF would not change its taxability.

AI Summary

HUF capital gains taxability: sale proceeds remain taxable to the HUF absent partition, despite payment to members' accounts. Where no partition has occurred, sale proceeds and resulting capital gains from an ancestral house are attributable to and taxable in the hands of the Hindu Undivided Family; mere receipt of amounts into bank accounts in the names of individual HUF members does not change taxability or transfer beneficial ownership.