An individual A holds some shares in a listed co. as a second holder with B, a parent as the first holder. B expires and A becomes the sole holder, the shares are now HUF assets in A's hands. "A" registers as a single member HUF for taxation of ancestral property.
"A" submits a transmission form to the registrar for deletion of B's name from the shareholder's register, together with the PAN card of "A"(HUF).
The registrar states that the holder now is individual A as per share certificate and hence A's PAN card as an individual is required to effect the change.
However once "A" does this, this asset becomes his/her asset as an individual for taxation purposes and can not be subsequently declared as an HUF-asset...at least to the best of my knowledge.
Can a knowledgeable expert please clarify how it is possible under the circumstances to effect the transmission through PAN card "A"(HUF), i.e. by declaring to the SEBI that "A"(HUF) is the taxable entity in the transaction even though shares are held by individual "A" by virtue of the process of transmission?
Thank you.
"A" submits a transmission form to the registrar for deletion of B's name from the shareholder's register, together with the PAN card of "A"(HUF).
The registrar states that the holder now is individual A as per share certificate and hence A's PAN card as an individual is required to effect the change.
However once "A" does this, this asset becomes his/her asset as an individual for taxation purposes and can not be subsequently declared as an HUF-asset...at least to the best of my knowledge.
Can a knowledgeable expert please clarify how it is possible under the circumstances to effect the transmission through PAN card "A"(HUF), i.e. by declaring to the SEBI that "A"(HUF) is the taxable entity in the transaction even though shares are held by individual "A" by virtue of the process of transmission?
Thank you.