Upon inheriting the property from your deceased father as his legal heir, it becomes your self acquired property.

Any male member (co-parcener) of Hindu family can convert his self-acquired property into Hindu undivided family property by throwing the same into common hotch pot (common stock) as being considered to be that of Hindu undivided family. Such a conversion can be made by word of mouth.

If a member transfers his self-acquired property to the HUF without receiving proper sale consideration, income from such property is not taxable in the hands of the HUF. It will continue to be taxed in the hands of the member.

You are at liberty to form HUF with your wife and son 

you can transfer property to HUF by executing gift deed in favour of HUF 

In the case of certain HUFs, the tax liability can be reduced by partition of the HUF. This can be easily done in a case where the partition results in separate independent taxable units.

2)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.

Dear client,  

If a member transfers his self-acquired property to the HUF without receiving proper sale consideration, income from such property is not taxable in the hands of the HUF. It will continue to be taxed in the hands of the member.

HUF stands for Hindu Undivided Family. It is a separate legal entity that can be formed by a Hindu family consisting of a common ancestor and his lineal descendants, along with their wives and unmarried daughters. A HUF can own property, run a business, invest in various assets, and file tax returns in its own name. A HUF has its own PAN and enjoys a separate basic tax exemption of Rs. 2.50 lakh in addition to the tax exemption of each of its members.

To form a HUF, you need to follow these steps:

• Write an HUF deed on a stamp paper, stating the names of the HUF’s karta, coparceners and members. The karta is the senior-most male member who manages the affairs of the HUF. The coparceners are the male members who have a right to demand a share in the HUF property. The members are the female members and minor children who have a right to maintenance from the HUF.
• Apply for an HUF PAN card using Form 49A at the NSDL website.
• Open an HUF bank account.

To transfer your property to your HUF, you need to execute a deed of assignment or gift in favour of your HUF, stating that you are transferring your individual rights in the property to your HUF as a gift or for consideration. You may have to pay stamp duty and registration charges on such transfer, depending on the state laws.

When you sell the property as an HUF, you will have to pay capital gains tax on the difference between the sale price and the cost of acquisition or improvement of the property. The capital gains tax rate depends on whether the property is long-term or short-term, depending on the period of holding. Long-term capital gains are taxed at 20% with indexation benefit, while short-term capital gains are taxed at the normal slab rates applicable to the HUF. You can claim exemption from capital gains tax by investing the sale proceeds in another residential property or specified bonds under Section 54 or 54EC of the Income Tax Act.

Yes.

Execute HUF deed. Apply for PAN card of HUF. HUF is considered as a separate entity under income tax.

Greetings of the Day,

I have read your issue but find that there are some facts which need to be clarified. You can approach on either nine two one two one two four five eight five or seven zero four two eight three three six eight six for personal approach.

We Hope that a personal consultation would be fruitful to the issue and it would be better for you to talk to someone directly.

Best Regards

SPS Law Chambers
New Delhi.

Dear sir, 

you can very well construct an HUF and transfer the property. When the land is sold throuhg HUF and you as Karta, the taxes will be borne by HUF.