Renting residential property in the name of HUF.
Sir, we own a residential house in our home town, inherited from our forefathers. The house is currently registered in the name of four legal heirs i.e.mother and three brothers.
The terrace of the house is let out to a mobile tower company for ten years.now the agreement is to be renewed. This time, we, the four legal heirs have formed an HUF and opened an account in the name of HUF. We also signed an agreement as HUF with the tower company.
but while paying rent,the company has refused to pay the rent in to HUF account despite the agreement. The company official insists that ,the property card is in the name of four individuals. So the property should first be transferred in the name of HUF formed by us which should appear in property card.
we argued that the property stands in the name of members who have formed the HUF. so THERE IS NO NEED TO TRANSFER THE PROPERTY IN THE NAME OF HUF formed recently only for TAX-SAVINGS ON RENT ON ANCESTRAL PROPERTY.
KINDLY GIVE YOUR LEGAL OPINION IN THE MATTER. IS THE COMPANY'S OBJECTION RIGHT ? IF YES, THEN, WHY DID THEY SIGN THE AGREEMENT ?