sir,i seek guidence in the following matter.
i wish to dissollve my huf,
does the deed need registration,as the huf has no immovable property,has only financial assets
i wish to do it this month ir feb mar 2015.
few of the financial assests fmp/bank fd are maturing in 2016, will it be ok to make mention of those fds,fmps and encash them as an when they mature in huf bank a/c ? can i keep the huf bank a/c live till the secirities are matured ? do i need to inform the bank about it ?
do i need to get my partion deed approved bi the ITO ?
Asked in Family Law from Mumbai, Maharashtra
1. If any immovable property is there in the HUF then it can be dissolved by way of deed of partition which is required to be registered as well.
2. Since no immovable property s there in your case, then a simple notarised deed for partition is enough.
3. The bank is definitely required to be informed of this dissolution and the a/c is to be closed.
4. The following legal aspects in respect of partition of HUF, should also be kept in mind while the partition of HUF which are as under :- (i) Distribution of the assets of an HUF in the course of partition, would not attract any capital gains tax liability as it does not involve a transfer. (ii) On the basis of the same reasoning distribution of assets in the course of partition would not attract any gift tax liability, and (iii) There would be no clubbing of incomes u/s. 64 as it would not involve any direct or indirect transfer.
Hi, it is better you must enter into a registered deed of partition and you must inform the bank regarding dissolution of HUF.
1)Karta has to make a dissolution / distribution of HUF deed. It has to be signed by all co-parceners.
2)it is sufficient if it is notarised as no immovable property is involved .
3)once HUF is dissolved your account with bank will be closed .
4) it would be advisable to dissolve HUF after maturity of FD
5) you have to inform bank of dissolution of HUF
6)The partition is not valid and the HUF is assessable to the tax assuch, unless the finding is recorded by the AO by an order undersection 171 Addl CIT v. Maharani Raj Laxmi Devi (1997)224 ITR
582/91 Taxman 20 (SC
7) consult your tax consultant in this regard
Once you dissolve the huf then the bank account cannot remain operative. You must inform the bank of Partition and the dissolution of the HUF. A simple notarized deed of dissolution and partition would suffice as huf have no immovable property. It is advisable that until the fd etc is expired the partition be not done. Consult your CA.
1. You can execute and notarise the Dissolution Deed duly mentioning therein the pattern of dustriution of the moveable aeets amongs the members. The said deed has to be signed by all the members of the HUF,
2. The FD account in the name of HUF is going to mature in 2016. So, you should desolve the HUF in 2016 to allow the FD to be matured since the momemt HUF is dissoled, the FD opened in the name of can not be handled by the HUF any more. If you want to dissolve the HUF now itself, you should get the FD encashed first,
3.Get all the FDs encashed first and after that there is no need to inform the Bank about the dissolve of the HUF,
4. During the existance of HUF, you can not file partition suit. The Disolution Deed for the HUF should detail the partition/distribution of the moveable assets.
1. Dissolution of HUF means entire assets of HUF are to be distributed among all HUF members. No partial distribution is allowed.
2. Draw a partition deed for HUF and carry out total distribuion of assets to all members of HUF. No separate dissolution deed is required to be executed.
3.The family has to enter into a family settlement or relinquishment deed. Unless you register the property, title will not pass on to the karta.
4. Since the FD is going to mature in 2016 you should wait till the maturity of FD to dissolve HUF. After the dissolution of HUF you wont be able to deal with the FD. If you wish to dissolve HUF now then let it be preceded by the encashing of FDs.
5. The bank is required to be informed of the dissolution of HUF.