01 August 2017
I disagree with fellow expert, Amol & agree with Studentsca. You do not have to partition the existing HUF to form a new one. As rightly said, the new HUF will contain you, your wife and lineal descendants with you being the Karta of the new HUF. You will however have to carefully delineate the funds or properties owned by you and the HUF that you are part of. I would advise you to seek professional help on this from a CA Firm that is experienced in dealing with such transactions to avoid any rude shocks from the tax department. What Amol has said is a possibility of interpretation by tax authorities so the transaction needs to be carefully structured.
01 August 2017
There is No any concept of FORMING of HUF. HUF per se can not be formed. It has yo be there in existence. Some people do try to ARGUE that I received a gift as xxxxxx HUF AND as a Karta I accepted the same. If with such kind of advice from someone like CA or Tax expert, you happen to accept a gift for your HUF, you will be doing so at your own risk. All the best
02 August 2017
@ Anand : HUF can have its income independent of family. If this income is distributed among the coparceners, it is not taxable in the hands of coparceners. What else you need in this?
02 August 2017
@Aaaaaa : I think I have already answered this. Some CA / tax experts do advocate that by GIFT, HUF can come into existence. If you want you can follow them...but at your own risk.
CAclubindia
