Question ID :
29596
HUF -Partition
On partition of HUF-Income is taxable in the hands of Karta or Co parcener ?
What is mechanism of taxability in the hands of individual hands ? i.e. Ratio or proportionate .
Posted by
samirkumar gokulbhai kasvala
on
Apr 24, 2018
Filed Under
DIRECT TAXES
Sir,
Section 47 of income tax act excludes distribution of capital assets on total or partial partition of HUF from the purview of transfer. Hence HUF is not liable to pay tax on partition.
us. 171, Income of HUF up to the date of partition will be assessed in the hands of HUF as if no partition took place and the members of HUf shall be liable for tax on income so assessed.
Posted by
Balaji H on
Apr 26, 2018
Answer ID :
65566
there is no tax on the partition of HUF.
Posted by
CA. SATISH CHAND GARG on
Apr 26, 2018