Wealth Tax : Dates to be remembered in case of Deemed Assets

• If any asset is transferred to spouse during any previous year related to assessment year 1964-65 to 1971-72, then, it will not be treated as deemed assets of the transferor. This period will also apply if assets transferred to any person or association for the benefits of the spouse
• If any asset is transferred to daughter in law (i.e, son’s wife) before 1st of June, 1973 or transferred to any person or association for benefit of daughter in law before this date, then, it will not be treated as deemed assets of the transferor
• If any member of HUF has converted his own assets as assets of HUF before 1st January, 1970; then, it will not be treated as deemed asset of member who has converted such assets as assets of HUF

Important Announcement: Non-applicability of taxable services in PCE-Paper 5: Taxation, IPCE-Paper 4: Taxation and Final-Paper 8: Indirect Tax Laws for November, 2012 examinations

Read it HERE on BOS Portal of ICAI

CA Final May 12 Indirect Tax Question Paper

CA Final May 12 IDT

CA Final May 12 Direct Tax Question Paper

CA Final May 12 DT

Funny MEME : TAX Keeps Changing

Incomes not treated as those of HUF & deductions available from GTI to HUF

Incomes not treated as those of HUF - 

• Income from property transferred to a member
• Income from property transferred to the family
• Income from personal business of a member
• Incomes in case only one coparcener is there in Dayabhag School
• Income earned by personal efforts of a member
• Impartible estate

Deductions available to HUF from Gross Total Income -

Conditions for being assessed as HUF

The following can be regarded as the two main conditions which are required to be complied with for being assessed as a Hindu Undivided Family(HUF) -

1. There should be coparceners
2. There should be any common property of the family

Here, “coparceners” refers to two or more individuals inheriting any property together, or in other words two or more people who are co-heirs, and have rights on the property that they inherit

Hindu Undivided Family(HUF) - Meaning & Types

According to Hindu Law," A Hindu Undivided Family consists of all male persons lineally descended from a common ancestor (excluding such persons who have separated themselves from the joint family by partition of assets) and includes their wives & unmarried daughters, and also a stranger of HUF"

HUF is mainly governed by either of these two schools of law -

1. Mitakshra
2. Dayabhag

It is to be noted that Dayabhag School is popular majorly in parts of Bengal only and Mitakshra stands as the most followed and exercised school of law for HUFs

These schools are majorly influenced by Hindu laws, traditions and practices.

Infact "Mitākṣarā" & "Dāyabhāga" are two legal treatise and commentaries of hindu law which deal with the law and procedure of inheritance. The central difference between the texts is based upon "when one becomes the owner of property". The Dāyabhāga does not give the sons a right to their father's ancestral property until after his death, unlike Mitākṣarā, which gives the sons the right to ancestral property upon their birth.

For further readings regarding these schools, one may refer to the articles- Mitākṣarā and Dāyabhāga on Wikipedia-The Free Encyclopedia

Some Exceptional Cases Where Income Is Assessed In The Same Previous Year In Which It Is Earned

• Income from Shipping Business of Non-Residents (Section 172)

• Assessment of a Person leaving India (Section 174)

• Assessment of a Person likely to transfer property to avoid Tax (Section 175)

• Assessment of Income of Discontinued Business (Section 176)