HUF Firm clarity on Loan distribution

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This discussion clarifies loan distribution from a Hindu Undivided Family (HUF) when it's actively running. Unlike closing an HUF which requires equal division of assets, a Karta can provide loans to individual family members based on their specific needs. The amounts can vary, meaning there's no requirement for equal distribution when issuing loans while the HUF remains operational.

Aashish K Mishra

Aashish K Mishra (Querist)

25 April 2023 Hi;
Being a Karta of HUF; I understand if I close the HUF; i have to equally divide the amount to all My family members under this HUF; however My query is if currently My HUF is running normally and internally I want to give loan to my members; do I need to equally divide or it can vary ? ex: I have 10 lakhs; Wife: 5 lakhs; 1st Son: 2 Lakhs and 2nd Son: 3 Lakhs ?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

25 April 2023 By giving loans, the HUF will not be closed, and as such there will not be any such restrictions. Means, you can give loan/s as per requirement of member/s.

Aashish K Mishra

Aashish K Mishra (Querist)

25 April 2023 Thanks Dhirajji for your response.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

25 April 2023 You are welcome.

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