Tax clearance certificate u/s 230A in case of partition of HUF. - Income Tax - 1421/CBDT

INSTRUCTION NO. 1421/CBDT Dated: October 29, 1981 It has been contended that the provisions of sec. 230A(1) are not applicable in the case of partition between the co-owners of an immovable property as it does not amount either to transfer or to extinguishment of rights. The question whether an instrument of partition of HUF requires a clearance certificate u/s.230 A(1) of the I.T.Act before its registration u/s.17 of the Indian Registration Act, 1908 if the value of the property exceeds Rs.50,000 has been examined in consultation with the Ministry of Law. 2. It is clarified that any instrument which is intended to be an evidence of the partition of immovable property between the co-parcners comes within the purview of sec.17(1)(b) of the Registration Act,1988, which deals with instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future any right, title or interest, whether in present or in future any right title or interest whether vested or contingent. If in such a case the property is valued at more than Rs.50,000 the provisions of sec.230 A of the I.T.Act would be applicable. The vendor has, therefore to submit the tax clearance certificate to the registering officer for registration of such documents. 3. A copy each of the reference made to the Ministry of law and its opinion is attached for information. 4. These instructions may please be brought to the notice of all assessing officers under your control.