Blend Karta Property To Huf Account

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You have now 2 separate HUF. If it is in separate names then partition deed is better.

You have now 2 separate HUF. Property is in joint name of earlier HUF ? If it is in separate names then partition deed is better.

Dear Client, Blending means transfer of one’s individual property in the common hotchpot and make it a part of the common property of the HUF. There must be an intention to throw the separate property into the common stock and it is necessary to waive all separate rights in respect of the property, which must be clearly established through a declaration. Only the coparcener is entitled to throw in HUF’s common property. a. Blending can be utilized for creating smaller HUF. HUF can be created by impressing one’s self acquired property with the character of HUF property by bringing in to existence an HUF comprising the person himself, his wife & children. b. Applicability of Section*Phone*of I. T. Act, *Phone*Transfer of individual property in the common hotchpot is deemed to be a gift and income from the transferred asset is deemed to be the income of individual under Section*Phone*of the Income Tax Act, 1961. As per section*Phone*of the Income Tax Act, if any property has been transferred by the individual, directly or indirectly, to the family otherwise than for adequate consideration then the income derived from such property shall be deemed to arise to the individual and not to the family and where the converted property or any part thereof is received by the spouse of that individual on partition the provisions of sub-section (1) shall apply. Similarly provision was inserted in the Wealth Tax Act, 1957 under section 4(1A). c. Rights of members of HUF do not get enlarged on throwing property into family hotchpot, income from said property had to be treated as assessee’s individual income only. The property can change its legal incidents on the birth of son. d. Partition of HUF after blending This is for achieving distribution of immovable property among members because giving it in any other manner will require registration for effective transfer. Each division is entitle to claim exemption under Sec 5 (vi) of the Wealth Tax Act. Thanks and Please Appreciate