HUF INCOME TAX

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The user is asking if they can establish a second Hindu Undivided Family (HUF) with their wife and daughter, while already being the Karta of an existing HUF formed with themselves, their mother, and wife. They are concerned about the legality of having two HUFs with the same Karta and potentially the same name, especially given the rule against individuals having multiple PAN cards. The advice suggests that while theoretically possible, operating two HUFs with identical details could be practically challenging and lead to complications. Adding a numeral to distinguish the HUF names was also discussed.

Nishkam Gupta

Nishkam Gupta (Querist)
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02 June 2023 I had formed HUF with self, mother and wife in my name say NG (HUF) and am Karta of this HUF. This can be my father's HUF but I had not named it in fathers name as he had expired 7 years ago and I formed and registered the HUF 2 years after his passing away. His PAN was closed.

I had a daughter around 10 months ago and now I want to register another HUF with self, wife and daughter as coparceners. Can I register this 2nd HUF also in my name as NG (HUF) with myself as Karta. Date of formation will be 2022. I am keeping names same as typically HUF name is Karta Name (HUF).

Is this legitimate as per IT Act as law says an individual/HUF/entity cannot have 2 Pan cards. Will the 2 HUFs be considered different as coparceners are different & smaller HUF within family is permissible and DOB is different for both. But the names of both HUFs being same NG (HUF) and other details of Karta ie myself being same, am seeking clarity. Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 June 2023 1. Theoretically it would be legitimate..
2. Practically, you would regrate to operate both by same Karta, by explaining the difference between both at each and every stage/time/agency.

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Nishkam Gupta

Nishkam Gupta (Querist)
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02 June 2023 Sir thanks for ur reply. Can I add a numeral to the name to distinguish NGyyyy (yr of birth). is it permissible

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 June 2023 Though permissible, the name of first HUF itself is problematic.

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