Capital asset distribution on HUF partition remains non-transfer, with cost and holding period carried forward. Distribution of a capital asset on the total or partial partition of a Hindu undivided family is treated as a transaction not regarded as a transfer. The transferee, being a member of the family or any other person, takes the asset at the previous owner's cost, as increased by the cost of improvement, and the previous owner's period of holding is included for capital gains purposes.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital asset distribution on HUF partition remains non-transfer, with cost and holding period carried forward.
Distribution of a capital asset on the total or partial partition of a Hindu undivided family is treated as a transaction not regarded as a transfer. The transferee, being a member of the family or any other person, takes the asset at the previous owner's cost, as increased by the cost of improvement, and the previous owner's period of holding is included for capital gains purposes.
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