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Queries related to formation of HUF

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Ashutosh

26 Points Posted on 23 January 2023

Hello,

I am married for past 2 years & wish to start an HUF with me as Karta & Wife as co-parcener. We don't have any kids yet. I have the following queries:

1. Me & my wife stay in a rented accommodation. My Aadhar has the address of the rented accommodation. So, can HUF accept the rented accommodation as it's address?
2. Do I or my wife need to submit any proof of permanent address, in case answer to first question is yes?
3. I have read on this forum that HUF can be formed with a capital of even Zero Rs? Can somebody re-confirm this based on recent regulations. If we can form with zero capital, then in that case do we need a gift deed?
4. In HUF deed, it says money is received from Father/Brother/ Mother etc as capital. Can me or my wife give the initial capital of HUF formation?

Request everybody's guidance on this topic.

Replies (5)

Quick Summary

This discussion addresses common queries regarding the formation of a Hindu Undivided Family (HUF). The original poster, married for two years and without children, seeks clarification on using a rented accommodation as the HUF's address, the necessity of permanent address proof, and whether HUFs can be formed with zero initial capital. The responses confirm that a rented address is acceptable, permanent address proof isn't mandatory but can be provided, and while HUFs can technically start with zero capital, funds are needed for practical operations like opening bank accounts. It's also noted that while personal contributions are possible, ancestral gifts or inheritance are often preferred for initial capital.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121488 Points Posted on 23 January 2023

1. Yes.

2. If there is any ... provide, but not mandatory.

3. Yes, it can be formed with zero capital, but to run it or open bank account, or invest any amount, you need capital. So better to get it from the beginning.

4. That is not better option. Any ancestral gift or inheritance is preferred.