HUF

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This discussion addresses whether inherited funds from a father's estate can be used to form a new Hindu Undivided Family (HUF). The consensus is that gifts or inheritance can indeed form HUF capital, with income derived from it being taxable in the hands of the HUF, not the individual. For the specific formalities and documentation required, consulting a Chartered Accountant is recommended.

Prasanna

Prasanna (Querist)
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10 July 2020 The assessee's family consisted of his father, mother and yonger brother. His father had never formally created HUF. On the demise of his father, the assessee, his mother and his brother separately received various amounts as the nominees / successors of his father.

The assesse is married having his wife and son as the members of his own family. Can the assessee treat / use the receipt of money from his father's estate as his capital for forming his own HUF? Will the income derived from this money be treated as the income of HUF and not that of the individual assessee?

What are the formalities / documentation required to be completed for forming his own HUF??