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HUF Partition

CA. Gurdeep Singh Chawla (C A) (7080 Points)

26 April 2008

One HUF consisting of karta, his wife, two married sons & one married daughter having bank balalnce of Rs. 2.00 lacs & FDR of Rs. 4.00 lacs. Karta wants to close / discontinue the HUF file. What is the legal procedure of partition/distribution the balance (Rs. 6.00 lacs)of HUF

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2 Replies

CA Akshat (article) (422 Points)
Replied 26 April 2008

the distribution will be mande as per the hindu act and as the amendment is there.... from 9-9-05 the daughter has legal right in this HUF

as per my knowledge the KARTA has to make effidavit and close all bank accounts in the name of HUF

make aggreement for distribition of assets / sale of assets

apply for the cancellation of PAN no

Proceedure for sale the business or close down the business

CA Sanjay Shah (Chartered Accountant) (34 Points)
Replied 26 April 2008

Karta has to make a dissolution / distribution of HUF deed. It has to be signed by all co-parceners. Any co-parcener can assign / relinguish his /her right in the property of HUF.

Karta has to then file last return of HUF alongwith copy of above deed