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Can HUF be formed even a person has daughters

07 December 2018

A person has a family business. He has two daughters and both are helping him more than a lot but he is worried that HUF can be formed because he had daughters...

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Dinesh Patil

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14 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193950 Points)
Replied 07 December 2018

Yes, .........actually HUF gets formed when a person gets married .....

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Dinesh Patil (5 Points)
Replied 07 December 2018

can u refer any sections of IT Act.
it will be resourceful.
Thanks

kunal jajodia (13 Points)
Replied 07 December 2018

how huf is formed when a person gets married. as per my limited knowledge huf creation requires at least two co-parcenors. please correct me if i am wrong.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193950 Points)
Replied 07 December 2018

The concept of Joint Family under Hindu law as well as the HUF in Income Tax Act, 1961 is broadly the same. HUF is purely a creature of law and cannot be created by an act of parties (except in case of adoption and reunion). A HUF is a fluctuating body, its size increases with birth of a member in the family and decreases on death of a member of the family. Females go and come into HUF on marriage. If there is family nucleus, there need not be more than one male member to form a Hindu undivided family as a taxable entity under the Income Tax Act. The expression “Hindu undivided family” in the Income Tax Act is used in the sense in which a Hindu joint family is understood under the personal law of the Hindus. Under the Hindu system of law a joint family may consist of a single male member and widows of deceased male members, and the Income Tax Act does not indicate that a Hindu undivided family as an assessable entity must consist of at least two male members (Refer Gowli Buddanna vs. CIT (1966) 60 ITR 293(SC).

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193950 Points)
Replied 07 December 2018

https://www.caclubindia.com/forum/huf-formation-on-marriage-115458.asp

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Prem Kumar Chunduru (165 Points)
Replied 07 December 2018

huf can be formed by a husband and wife. wife can only be a member. can not act as a coparcener

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193950 Points)
Replied 07 December 2018

An HUF is automatically created at the time of marriage.

Prem Kumar Chunduru (165 Points)
Replied 07 December 2018

Please refer to the following linke

https://lawrato.com/indian-kanoon/family-law/can-married-daughter-be-a-part-of-huf-581

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193950 Points)
Replied 07 December 2018

Can a single male constitute HUF?

Family always signifies a group. Plurality of persons is an essential attribute of a family. A single person, male or female does not constitute a family. A family consisting of a single individual is a contradiction in terms. Section 2(31) of the Income Tax Act, 1961, treats a Hindu undivided family as an entity distinct and different from an individual. Assessment in the status of a Hindu undivided family can be made only when there are two or more members of the Hindu undivided family. (Refer C. Krishna Prasad vs. CIT (1974) 97 ITR 493(SC). Husband and wife can constitute HUF if property is received on partition

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kunal jajodia (13 Points)
Replied 07 December 2018

in case of partition of greater huf it can be created and it is joint property of husband and wife. in normal scenario huf is formed on birth of first child.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193950 Points)
Replied 07 December 2018

Assesses go certain property from HUF but has no son. What is the status?

Where the assesses having life, but no child got certain property on partition of bigger HUF, it was held that assessee’s claim for HUF status (smaller HUF) was valid. CIT Krishna kumar (1982) 10 Taxman 292 (MP).

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SURANA (PROPRIETOR) (526 Points)
Replied 12 November 2021

Is there any conclusive guidance on HUF and its Taxation ?

well after read some latest article.. this is what i came to knew... i am not sure if those article can be final or any other new development and amendment has resulted into different answer... but trying to figure out this

1 HUF created by virtue of law on marriage itself ? No need to wait for child to born.?
Yes

2. HUF doesnt need complusory a male child?

YES

(if the answer to Q1 is Positive then When HUF is already created on marriage itself then the question of male or female child should not arise)

3. HUF is valid with just a daughter ?

YES

(if the answer to Q1 is Positive then When HUF is already created on marriage itself then the question of male or female child should not arise)

4. Elder Daughter can become Karta of HUF , irrespective of any male child there or not?
YES

5. Married Daughter is a member of both HUF, maternal as well as paternal families ?
YES

Correct me if answer to above is Negative.

Waiting for some more query and its answer to add to this points.