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HUF

I along with my brother and kids of both wish to form an HUF. I am elder and have a son too. The propery of my grand dad (deceased) has been sold and my Father inherited the same being relinquished by his brother and sisters. Can i form an HUF when I get 30% share from sale proceedsa of property,. If yes, what document I have to prepare to furnish to Banker as Address Proof and Photo proof.

Dear Rajesh,

You can not create HUF with your brother. Following is some principles for creation of HUF. Pl read it and if you have any doubt and question, please post the same.

Creation of HUF -
Any person can create HUF after his marriage at any point of time. Although HUF is automatically created once a person get married, however you need to do some formality to create a legal HUF and to start the business in the name of HUF. Below are the steps for creating a legal HUF.

Steps to create a legal HUF - 
a) Draft a Deed and get it notary attested.
b) Apply for a PAN Card.
c) Apply for a bank account in the name of HUF.
d) Start the business in the name of HUF.

Benefits of HUF -
Normally a HUF is created to genarate a seperate assessee in the eyes of law. Since HUF is also eligible to get income tax slab rates benefit just like any individual, therefore formation of HUF is tax effective. 
 

Following can be members & coparceners of HUF.

1. Hindu Undivided Family consists of all male members lineally descended from common ancestor and their wives and daughter. 

2. All coparceners are members of HUF, but all members are not coparceners. Coparcener is different from the member. Coparceners are those members who acquires by birth an interest in the joint property of the family. Coparcenary is restricted to four levels of living order.

3. Wife can only be a member, but not coparcener.

4. Daughters are also coparcener w.e.f. 9.9.2005 after the Hindu Succession (Amendment) Act, 2005. After Hindu Succession Act amendments, equal rights to daughters have been given even after their marriage. Daughter of a coparcener shall by birth become coparcener in her own like a son. Daughter has the same rights in the coparcener property like a son.

5. Married women have rights in two HUFs - 1) in her father's HUF as a coparcener and 2) in her husband's HUF as member.

6. Members of the family who are not coparceners, have no right to claim share in the family property.

If you have any question, Pl post the same.

Kind Regards
TaxReply.com

Supppse, Mr. A married with Mrs. Z. How many generations of A & Z can be included in Mr. A's HUF?

Dear Shravan,

Members upto Four Generation can be included.

Kind Regards
TaxReply.com

Query: A HUF has four members- Mr A,Mrs A,Son A,daughter A with total assets of Rs 60,00,000/=. As you explained that a member i.e. Mrs A has no right in the share of Family property.Pls explain the share of each individual in the HUF propery of Rs 60,00,000.

Ans: Rs 15 lacs each or Rs 20 lacs for each coparcener  & Nil for wife who is member only.

Dear Harish,

In this HUF, there are total 4 members. Out of which only 3 are coparcener i.e. excluding wife.

So each share would be Rs.20 lacs for each coparcener excluding Wife. Wife's share shall be Nil.

If you have any question, Pl post the same.

Kind regards
TaxReply.com

I am a single father with my daughter. Means divorce. Can we create HUF for both of us ? If yes, then under which law is it possible ? Waiting for your reply.

Can I form an HUF consisting of 3 brothers and 1 sister (real siblings)?

Can I form an HUF consisting of 3 brothers and 1 sister (real siblings)?

Sir . I opened HUF firm my HUF firm name Manishkumar kalpesh jain.huf and I am filling ITR last 4 year But my PAN name is Manish Kumar Jain . And kalpesh is my father name Is it correct or have to correct on same like karta name And my child birth date Is 12 /08/2013 But HUF incorporation date is 14/08/2013 Is it correct in future my family face any issue Please guide... Regard Manish

Read more at: https://www.caclubindia.com/profile.asp?member_id=1648935

I am married, parents are no more, left with a younger brother. Can I open a huf with my younger unmarried brother as all inherited property are on joint name of brothers.

I have question regarding the HUF held by my father as the karta where I was the Coparcener and my mother(who has deceased) as a member and married daughter as a Coparcener. Now my father is deceased and I don’t plan to become the karta. How can I dissolve/partition the HUF so all the investment can be distributed to the son. Who should be signing for the partition deed? Should that be signed by me and my sister along with other members my wife? Or the partition deed needs to be signed only by me and my sister

Can I create huf with my father. My father will be karta and I will be co-parcener for the huf.pl guide ?

My daughter is staying seperately. Her husband's family is a HUF. She had 2 sons. A case for divorce is failed against her and is pending legal judgement. She married in and the huf is pre existing . Her sons are now majors. Her father-in -law is now the kartha of the huf after his father expired. The father in law has one married sister, another married younger son and a married daughter and ofcourse his spouse as family member. Now I request you to please clarify me the rights of each member of the family to the share of each member in case my daughter puts a condition for devolution of huf property and claim to handover the respective shares of her two sons. Please clarify and guide.

Can we change new address instead of old address in HUF deed and if daughter is married 5 years ago can we reduce her name in HUF deed?
Do we have to make a new HUF deed for all this?

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