| Question And Answer | |
|---|---|
| Subject: | Partition of HUF and Taxability of amount received by member |
| Category: | Income-Tax |
| Querist: | Jain |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | HUF, Partition, second marriage |
| Date: | April 19, 2022 |
Assessee is an individual. During life time of his wife who was bed return due to bad health, married with another lady. He had children from first wife . The first wife expired after the second marriage. The entire community and other family members have accepted second lady as wife of the individual. The person had a girl child from the second lady. On all records the name of children from first wife , daughter of second child and second wife have stated as members of HUF of the individual. After the death of an individual, the full partition of his HUF has taken place and each member i.e. kids from first wife, daughter from second wife and second wife received some properties movable and immovable.
whether assets received by second wife and her daughter are taxable under Income Tax Act . Pl guide
If the second marriage is considered valid in law . Amount received on partition will not be taxable .
Assuming the marriage is not considered valid , the children will still be considered as a relative and a part of the HUF.
The Hon’ble Supreme Court in the case of Commissioner of Wealth-tax v. R. Sridharan [1976] 104 ITR 436 (SC) held that where a son born out of this wedlock was brought up as Hindu and assessee had expressly declared that he and his son formed HUF could validly be member of HUF headed by his father and be governed by Hindu law.