The taxation of assets can also be an issue, as the personal funds invested in a HUF are actually associated with the individual income of the co-parker, which may not work if the original purpose of creating the HUF was tax. Therefore, in your case, you can become Karta, but before that, it is better that you have an agreement signed between all HUF members, which states that your father will pass Kartaship on to you due to his age and that other members accept it. As the name suggests, a HUF is a family of Hindus. But Buddhists, Jains and Sikhs are also considered Hindus and can therefore set up HUFs. The concept of HUF essentially evolved from the old Hindu law. There are two law schools that regulate HUF in India – Mitakshara and Dayabhaga – and there are some differences in the rights and duties of HUF members in each of these schools. In addition, huf income can be invested by huf and will continue to be taxed in the hands of HUF. Can a married male adult member be allowed to be a Karta of his own HUF, including his wife and child, and at the same time a Coparcener of his father`s HUF??? This can be easily done if the partition results in separate independent taxable entities. For example, this will be very useful in the case of a HUF, which consists of a father and two sons who own two factories, a house property and with other income next door.
On the other hand, if the members of a HUF have a high individual income, the division may not be beneficial. In such a case, it would be wiser to maintain the HUF as a separate taxable entity. The difference between a Coparcener and a member is that a Coparcener can request the partition of a HUF. This is done through the distribution of HUF property among coparceners. While each Coparcener would then be entitled to a share of the property, the members would be entitled to alimony from the HUF. The Karta usually manages the family property, which is considered the common property of all Coparceners. Very good article My few questions are under here A is the Karta of a HUF (2002) he has S son & D daughter both are Coparcener D married daughter on 22-01-05 her husband DH & her daughter DD S son married on 06-12-07 his wife SW & daughter SD Now, the Coparcner, member & no statues of a page daughter HUF are: D, DH, DD on the wire side. : S, SW, SD It may happen that a HUF has only one branch that is not suitable for any physical service. In such a case, the company can be transformed into a partnership company.
However, it should be noted that the tax applicable to a company or corporation is 35%. Thus, it becomes clear that it will not be advantageous to convert a HUF company into a partnership company. Instead, it would be better to reduce taxes by paying remuneration to HUF members. HuF will continue to be assessed as such until division: once a HUF is formed, you must continue to file its tax returns unless a division takes place. Any right of division shall be addressed to the evaluating official. The evaluating officer, if he receives such a request, must make the request after having duly informed the members. Income from divided assets is taxed as the individual income of the member. If the member forms another HUF with his wife and children, the income from the assets transferred from the original HUF will be taxed in the hands of a new HUF. Please note that a female member cannot mix her accommodation with shared family accommodation.
However, he can give it to HUF, as stated in Puspadevi vs. CIT 109 I.T.R. p. 730 (SC). A female member may also bequeath her property to a HUF-C.I.T. . .