Hindu Undivided Family (HUF) is a term one hears all the time in legal-financial contexts. Even though you may have some idea of what it means, chances are several complex legal points may have skipped your notice. This guide would act as a quick recap on those legal aspects of an HUF, an oft-used legal institution in India for tax saving purposes.
See also: Who is an heir and what is inheritance?
Who can be part of an HUF?
An HUF consists of all persons directly descended from a common ancestor. These include the wives and daughters of the male descendants. Apart from Hindus, Jain, Sikh and Buddhist families can also create an HUF.
What does an HUF consist of?
An HUF has a Karta, typically the eldest person or head of the family. Other family members are co-parceners or just members of the HUF.
How is an HUF created?
A Hindu Undivided Family cannot be created under a contract. It is created automatically in a Hindu family.
Who can be the Karta of an HUF?
After death of the Karta of an HUF, the senior most coparcener becomes Karta of the HUF.
Can any member of an HUF be a Karta?
Under the Hindu Law only a coparcener can be become Karta of an HUF.
Can women be Karta of an HUF?
Women who join an HUF through matrimony are members and not coparceners.
What is the position of daughters in an HUF?
Once a daughter is married, she becomes a member of her husband’s HUF, while continuing to be a coparcener in her father’s HUF.
How is income of HUFs treated?
The Hindu Undivided Family is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961, for the purpose of assessment under the Act.
Does HUF require a separate PAN?
HUF has its own Permanent Account Number (PAN).
How can an HUF be dissolved?
Once a joint family’s income is assessed as an HUF, it will continue to be so until the coparceners opt for a partition.
Can coparceners of an HUF gift property?
Coparceners of an HUF cannot gift or transfer their rights in the assets of the HUF during their lifetime. But, they can bequeath their share in the HUF assets through a Will.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
[email protected]
Related Posts
Property rights of a daughter under Hindu Succession Act 2005.
Rights of a father to sell ancestral property.
Who is a Karta in a Hindu Undivided Family (HUF)?.
Finance Act 2016: Helping home buyers, through tax sops for builders.
What will be the implications if the HUF is abolished as a tax unit?.
Who is a coparcener in an HUF?.
