Table of Contents
Can a person belong to multiple HUFs?
As pre the Hindu laws an HUF can consist of four generations consisting of descendent of one common male ancestor. Within a larger HUF there can be many smaller HUFs also consisting of family of the coparceners. So a person can be a member of more than one HUF at the same time.
Can brother and sister form HUF?
A HUF can be formed with just two members one of whom is a co-parcener. But for an entity to be taxed as a HUF, it should have at least two co-parceners.
Can I form HUF with my mother?
HUF with only Female Members – A Hindu widow being the sole surviving member, cannot constitute a HUF. Gangamma Vs. Agl.
Who is Karta in HUF?
The head of a HUF is called the Karta, he is the senior-most male member of the family.
Can son be Karta of HUF?
A minor son could act as the Karta of a HUF in the absence of a father.
Can my father gift to my HUF?
I wish to gift ₹15 Lakhs to my son’s HUF with consent to all the members. Answer: As per Section 56 of the Income Tax Act the gifts received are not taxable in the hands of the recipient as long as the aggregate value of all the gifts received by a person during the year does not exceed fifty thousand rupees.
Can a husband and wife form a HUF?
Hindu Undivided Family is different from a Hindu coparcenary. To create HUF, at least two coparceners are required either son or daughter. Therefore only husband and wife cannot create an HUF, unless the property has been received by a coparcener on partition or otherwise.
Can a female member be Karta of HUF?
Thus, it is suggested that there should be an immediate directive to all the authorities/institutions in India to recognize a female as Karta of HUF, whether she inherits property from a male or a female ancestor. In such HUF husband and children should also be allowed to be members/coparceners of the Wife’s HUF.
Can a daughter be a Karta of her father’s HUF?
By virtue of the Hindu Succession (Amendment) Act 2005, daughters can also become coparceners and have interest by birth in coparcenary property similar to sons. Therefore, you can continue with your father’s HUF and become Karta of the HUF. There is no requirement to form new HUF and obtain new PAN.
Can a coparcener become the Karta of an HUF?
Only a coparcener can become the Karta of an HUF. Dilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies. My father had a Hindu Undivided Family (HUF) account and a PAN associated with it through which he paid all taxes on our agricultural income and rental income.
What is the clubbing of tax on HUF in Karta?
This clubbing can be surpassed if the amount transfer in HUF account is invested by Karta in tax free scheme (E.g., tax free bonds). Income earned from tax free bonds being tax free shall not be income and clubbed in hands of transferor u/s 64 (2) The tax-free income can then be re-invested to earn even taxable income.
Can a son have his own HUF under Hindu law?
Under Hindu law, there can be a HUF within a HUF. Therefore, a son can have his own smaller HUF while he continues to be a member of his father’s HUF. In his father’s HUF, he is a mere member – coparcener and in his own HUF, he is Karta.