Rajiv (CA IN PRACTICE) (66 Points)
17 January 2011Can any one tell me about the procedures to be followed for creation of HUF for running a business with family members, which includes mother and sons and their wives (as father is dead)?
can HUF be created in the name of the father who is already dead? what documents would be required for that purpose
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 19 January 2011
There is no formal procedure for creation of a HUF as it is automatically created.To form a HUF, the family must have at least two members, of which at least one person is to be male. A HUF can also consist of female members, being the wives and unmarried daughters of the male members.
It has to be created in the name of Karta, the manager / head of the family. Hence, after demise of father, it is not possible to create on his name. It can be created on the elder male member of the family.
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 21 January 2011
To begin with, you may apply for a PAN to create an HUF formally for IT purposes.
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