HUF income

I purchased a vacant land five years ago from my earned income.I showed that in my individual income tax returns and got it assessed then itself.Now,I am constructing a shopping complex in that land.Now,I am planning to open a HUF account with myself as karta.Can I show the cost of construction of shopping complex in my HUF account income tax returns and get it assessed?.It is not an ancestral property.Can I show the income generated from that property in my HUF account for income tax purpose?Can I give the income generated fro that property as gift to my grand children?
Asked 1 month ago in Income Tax from Tirupati, Andhra Pradesh
Dear Sir,

You can construct shopping mall with HUF income but you must have that much capital in your HUF account.

Yes, you can show the income from shopping mall in your HUF account but HUF should pay rent to your personal account for the land used by HUF.

Please feel free to revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
766 Answers
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Hi,
gift by the relative is not taxable in the hands of individual who receives such gifts.  For the purpose of understanding of relatives means
Relative for this purpose means: 
i. In case of an Individual 
a. Spouse of the individual; 
b. Brother or sister of the individual; 
c. Brother or sister of the spouse of the individual; 
d. Brother or sister of either of  the parents of the individual; 
e. Any lineal ascendant or descendent of the individual; 
f. Any lineal ascendant or  descendent of the spouse of the individual; 
g. Spouse of the persons referred to in (b) to (f).  
ii. In case of HUF, any member thereof. . 
so yes you can gift that property to your grand children.
Vishakha Agarwal
CA, Bangalore
210 Answers
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Hello Sir,

Based on the information provided by you, it appears that you do not have an HUF as on date. So it will be dificult to claim all the building expenses under HUF as your HUF does not have adequate funds/ capital. Again the Land is in your personal name and the building expenses would be done through HUF.

I would suggest not to unnecessarily complicate the process.

About the gift part, yes you can gift the income generated to your Grand Children even if the income is earned in your personal name.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
719 Answers
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sir i think the conversation is on with our professional colleague. If you have any doubts u can reach us on modani005@gmail.com
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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