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...
Thanks
Dinesh Patil
Yes, .........actually HUF gets formed when a person gets married .....
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).
https://www.caclubindia.com/forum/huf-formation-on-marriage-115458.asp
Please refer to the following linke
https://lawrato.com/indian-kanoon/family-law/can-married-daughter-be-a-part-of-huf-581
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
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).
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.
As on date. the ans, 4 is not affirmative.
As on date. the ans, 4 is not affirmative.
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