HINDU UNDIVIDED FAMILY (HUF). By Nikhil Agarwal (M.COM, CS, ACMA, ACA) & Sudhir Saklani (B.COM, CS, LLM). WHAT IS HUF?. It is obvious that a non-Hindu family cannot get this status. So, A Parsi, Muslim or Christian cannot create a HUF.
(M.COM, CS, ACMA, ACA)
(B.COM, CS, LLM)
No, an unmarried cannot form a HUF of which he seeks to be the Karta himself. He can very well be the member of the HUF of his father or grandfather, but to create his own HUF he has to wait till he gets married.
A Hindu coparcenary includes the sons, grandsons and great-grandsons of the holder of the joint family property. By virtue of their birth, they acquire an interest in the property.
The female members are simply called members
Yes, there can be. Where a couple has only a daughter—-and the husband passes away,the mother-daughter duo can continue the HUF (although a problem may arise after she gets married and becomes a member of her husband's HUF). It has been held by the Allahabad High Court in CIT v. Sarwan Kumar 13 ITR 361 (All) that there can be an HUF consisting of female members.
Can a female be the Karta? The answer can't be No in the light of the amendment in the Hindu succession Act in 2005.An unmarried daughter, in the unfortunate event of her father passing away, will become the Karta of the HUF if she has no brother.
A father may make a gift of money to his son's newly-created HUF, clearly specifying in the Gift Deed that the gift is to his son's smaller HUF and not to the son himself. This will keep both Section 64(2)and Section 56(2) at bay.
After the HUF has a nucleus of its own and gets going, care has to be taken to keep the HUF's affairs completely distinct from the individual members' affairs.
Some other people, who aren't members ofthe HUF but are relatives in terms of Section 56(2) can also be found out.
Disclaimer Clause: Views expressed in this presentation views of the author do not necessary reflect those of the Institute.