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HUF with single male

Tax planning 1269 views 1 replies

s kumar

105 Points Posted on 05 December 2007

There is a Hindu family governed by Mithakshara law consisting of A, his wife and two unmarried daughters.

There is no joint family property or nucleus for A’s HUF i.e. Asset is nil.

A’s father gifts Rs. 5lakhs to HUF of A by an instrument of gift and A invest the same in Bank Fixed deposit

i) In absence of two male members and also in absence of nucleus, can a HUF be formed consisting of A himself, his Wife and unmarried daughter on receipt of gift form father?

ii) The income from Bank FDR will go to A’s HUF or will be treated as individual income of A?

Replies (1)

Jagrut Shah

Chartered Accountant

80 Points Posted on 05 December 2007

Dear S.Kumar,

Here I assume that there is no HUF till date and Mr.A wants to start HUF with gifted money. on that basis i would give u answer as below.

1) There is no where written in the law that 2 male person required for forming HUF i.e. Mr.A can formed HUF with the gifted money by his father and there is no issue on it.

2) Because here i assume that he take gift for starting the HUF so, income from that is charged on HUF and not on Mr.A.