Child Not Required to create huf:- As per Guwahati High court in the case of Arjun Kumar Jhunjhunwalla & Sons(1997) a Single male member, after marriage can form HUF.
Even with daughter you can form huf:- Even in SC in Surjit Lal Chhabda case has ruled that Male member with wife and unmarried daughter can form HUF.
Also in Madras High Court in the case of R. Subramania Iyer opined that “…Creation of Hindu Undivided Family is a God Gifted phenomenon. As soon as a married Hindu gets a Child, a new HUF, undisputadely comes into existence.
12 May 2010
to create an HUF we needs to study the provision of Gift Tax for the introduction of intial capital, Gift tax act says that gift to close relative is not taxed under the head of income from other source, as the HUF creation, since the HUF is not relative as per the definition given in gift tax act hence will be treated gift to other however up to Rs. 50000/- can be given out of self generated income, or in excess of Rs. 50000/- will be taxed under income from other source.
13 May 2010
Dear Alok Could u please first tell us what the person intends to do with the HUF and will there be any income in the HUF so that a capital is needed.
If in the current year there is no income in the wifes account and HUF then take gift from anyone upto Rs. 150,000/- or Rs. 125,000/-. Since the basic exemption will not be crossed no tax will be paid and this would become the starting capital for the HUF. And after that the HUF can do share trading and earn in trading in shares and hence build up the capital.
13 May 2010
Mr. Maheswari I also read from the link as provided by you, but I have one question,
as a father cane gift the money and property to the son's HUF, in the article it has clreafied that the father making gift to the newly created HUF of his son can keep at bay both saction 64(2) & section 56(2), is it correct,
however it means that any gift which is made as above will not be taxed in father's hand as well as in the hand of HUF and income arising out of gift property or money will be taxed in the hand of HUF.
14 May 2010
To introduce as initial capital; one may show as FAMILY RECEIPTS during the year according to the ECONOMIC STATUS of the whole family (bigger than HUF likely to be assessed under Income Tax).
For example; just show Rs.12,000/- as Family Receipts received during various ceremonial occassions from relatives.
This way one can start his HUF.
Marriage gifts can also be introduced in common hotch-pot of HUF.
If one wish to show marriage gifts in her wife's name, it can be done so.
First of all; take PAN of both.
HUF PAN can be received by submitting photo copy of Personal Bank Account of Karta and no further documents are required.
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