29 April 2009
Hi This is common question but still i am asking what is the safest and correct way of formation of HUF other than taking Gift from elder bros. which is not possible inmy client's case due to family disputes.
30 April 2009
For Creation of HUF Gift is simple and easiest way you can take gift from Father in law , mother in law or any other relatives for creation of HUF
30 April 2009
In absolute terms what is an HUF? “HUFs are automatically born, which are euphemistically referred to as creation of ‘HUF’.According to analysts, 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.
Alternatively, the HUF may receive gift from third parties subject to the taxability u/s 56 of the Income Tax Act.
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