How do you make a Hindu undivided family?
How do you make a Hindu undivided family?
Hindu Undivided Family (HUF) Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family.
How can HUF be created?
You can save taxes by creating a family unit and pooling in assets to form a HUF. A Hindu family can come together and form a HUF. Buddhists, Jains, and Sikhs can also form a HUF. HUF has its own PAN and files tax returns independent of its members.
Can HUF be formed without a child?
HUF can be created even if there is daughter (female child). Child whether male or female is must. He can have his own huf in that case without any child ( he and his wife being the members of HUF). 2) Yes he can have his own huf created and be a Karta.
Can wife become Karta of HUF?
In CIT vs Seth Govindram Sugar Mills [1966 AIR 24], the Supreme Court held that a widow cannot be regarded as the karta of her husband’s HUF. However, she can manage the HUF assets and can represent the same for tax assessment, if the coparceners are minors until the eldest coparcener attains majority.
Who comes under Hindu undivided family?
Hindu Undivided Family (HUF) consists of all persons directly descended from a common ancestor, and also the wives and daughters of the male descendants. For instance, you and your spouse along with your two children can create an HUF and get certain relaxation in computation of taxes.
What are the advantages of Hindu undivided family?
Advantages of Creating HUF:
- Just like other individuals, even HUF members are liable to pay taxes every year.
- The head of a HUF has all the power to sign the relevant documents on behalf of other members in her/his family.
- An adopted child may also become a member of the HUF.
Can a person be a part of 2 HUF?
Thus, it is possible a person can be Karta in two HUF. Till your father’s HUF is partioned you can continue to be be the karta of the said HUF, if you are the eldest son otherwise the eldest son shall be the karta. So you can be karta for 2 HUFs.
What if Karta of HUF dies?
When Karta of the HUF dies, the next senior male member takes over as Karta. If the senior most member gives up his right, a junior coparcener can become Karta of the HUF, with the consent of all other major co-parceners as held by Supreme Court in Narendra Kumar J. This amendment gave them equal rights as the sons.
What is Hindu undivided family in simple words?
What are the limitations of Hindu undivided family?
Disadvantages of the HUF
- No outside members other than family members can be introduced to the HUF.
- While the Karta has all the power he also has the burden of unlimited liability.
- Also, the absolute dominance of the Karta overall business and financial decisions make cause conflict among the HUF.
Is HUF deed mandatory?
Deed: Though it is not mandatory to have a deed for the formation of an HUF, it is advisable to execute one from a legal and taxation perspective. It should include details of the karta, members of the HUF consisting of coparceners, and other family members, the corpus as well as the business of the HUF.
Is daughter in law member of HUF?
Yes, a married daughter is considered a part of HUF. Prior to 2005 amendment in the Hindu Succession Act, 1956, the daughter, on her marriage, ceases to be a member of her father’s HUF and becomes a member of her husband’s HUF.
Can a HUF be dissolved?
An HUF can only be dissolved after the partition of the property. For this, the family must execute a deed of partition and distribute properties amongst the members (karta and coparceners).
Can HUF name be changed?
The oldest son and now daughter also have equal rights can be karta in the said HUF based on the death certificate of father, the son can be appointed as karta of same, you can get in the PAN card of HUF the name change of the karta. Further in the bank accounts the name can be updated.
What are the merits and demerits of Hindu undivided family?
Advantages of the HUF But since the Karta has absolute power and takes all decisions by himself, it will lead to effective management. Just like a company, the existence of a HUF is perpetual. The death or retirement of one member of even the Karta will not affect it, and it will continue on.
Can 2 brothers form HUF?
Only one member or co-parcener cannot form an HUF; The joint family continues even in the hands of females after the death of the sole male member; An HUF need not consist of two male members. For example, a father and his unmarried daughters may form and HUF.