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HUF RELATED QUERRY

Kamal Verma (Financial advisor) (589 Points)

31 December 2024

Dear expert,

If a HUF has two member i.e. husband & wife, if wife had died, will HUF be desolved? Please explain.

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8036 Points)
Replied 31 December 2024

In a Hindu Undivided Family (HUF), the membership is determined by the Hindu law of succession and inheritance.

Impact of Wife's Death on HUF If the wife passes away, the HUF will not be dissolved.

Here's why: 1. _HUF Membership_: The wife's membership in the HUF was by virtue of her marriage to the husband (Karta). Upon her death, her interest in the HUF's properties and assets devolves upon her heirs, which would typically be her husband and children.

2. _Karta Continues_: The husband (Karta) continues to manage the HUF's affairs, and the HUF's existence is not affected by the wife's demise.

3. _No Dissolution_: The HUF is not dissolved, and its properties, assets, and liabilities continue to be managed by the Karta (husband).

Exceptions However, there are some exceptions to consider:

1. _Partition_: If the wife's heirs (husband and children) decide to partition the HUF's properties, the HUF may be dissolved.

2. _No Male Heir*: If the wife's death leaves no male heir to continue the HUF, the HUF may be dissolved.

In summary, the wife's death does not automatically dissolve the HUF. The HUF continues to exist, and the Karta (husband) remains responsible for managing its affairs.

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Kamal Verma (Financial advisor) (589 Points)
Replied 31 December 2024

Thank you very much for detail explanation. Can karta continue to file income tax return as HUF and individual capacity ?

Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8036 Points)
Replied 01 January 2025

As the Karta of a Hindu Undivided Family (HUF), you can file income tax returns in both HUF and individual capacities, but there are some considerations:

HUF Income Tax Return 1. _Separate Entity_: HUF is considered a separate entity from its members, including the Karta.

2. _File ITR-5_: As the Karta, you'll file ITR-5, the income tax return form for HUFs.

3. _Report HUF Income_: Report the HUF's income, deductions, and tax liability in the ITR-5. Individual Income Tax Return 1. _File ITR-1 or ITR-2_: As an individual, you'll file ITR-1 or ITR-2, depending on your income and other factors.

2. _Report Individual Income_: Report your individual income, deductions, and tax liability in the ITR-1 or ITR-2.

Key Considerations 1. _Separate PAN_: Ensure the HUF has a separate PAN from your individual PAN. 2. _

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