27 April 2009
A PERSON GOT MARRIED AROUND 50YRS AGO. HE NEVER FILED RETURN AS HUF. HE APPLIED FOR PAN AND RECEIVED IT IN FEBUARY 2009. CAN THIS HUF SHOW HIS BASIC CAPITAL FOR LAST 50 YRSOR NOT. IF YES HOW PLZ EXPLAIN IN DETAIL
28 April 2009
HUF Comes in existance from the date pf it is created . What is Date of Creation of HUF in your PAN Data, you can show capital from the date of Creation of HUF to till date & if there is any taxable income in hand of HUF from that capital you have to file I T Return for the same, You have to also keep track record of Capital Generated by HUF
28 April 2009
HUFs are automatically born, which are euphemistically referred to as creation of ‘HUF’. An HUF consist of at least two members (of which at least one should be male), and is automatically born with the ancestral property being received from or belonging to three generations above (example: if Mr X, a married man, receives ancestral property belonging to his great grandfather, the same will automatically be considered as property of Mr X’s HUF).
Alternatively, the HUF could also get formed with the asset gifted or given, preferably by a lineal ascendant, with a specific direction for the use of HUF.
Technically speaking, an HUF always exists in a Hindu family and never gets ‘created’. However, from a tax perspective, an HUF is created when it gets vested with assets, property or any income generating activity. What can be done is to create a corpus, which can yield income so as to make it an assessable entity. It is possible for a HUF to receive a gift. Insofar as creating the initial corpus is concerned, the same can be done only by receiving a gift from an outsider to the HUF. This would be because what a coparcener can do is only to blend his individual property with that of the HUF. No blending will be possible without an initial corpus. It may, however, be remembered that only a Hindu coparcener can blend his individual property with that of the joint family. Thus, a female member or any other member who is not a coparcener cannot blend the individual property with that of the joint property. The gift can be from any one including a stranger to the joint family provided there is a clear declaration of intention by the donor/testator that the gift/will is for the benefit of the HUF. This view has found favour in Pushpa Devi v CIT; CIT v M. Balasubramaniam (1990; 182 ITR 117; Mad, FB). In a case, for creating the initial corpus, a gift can be taken from your father who will be an outsider to the HUF consisting of male donee as Karta of HUF, his wife and the children.
29 April 2009
HI. BASICALLY I WANT TO KNOW THAT WHETHER CAN WE SHOW INTIAL CAPITAL FROM LAST 50 YRS THOUGH HUF HAVE NOT RECEIVED ANY GIFT NOR APPLIED FOR PAN.
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