Birth of a son in a Hindu joint family automatically makes him a member of the HUF. In view of this, all male members and unmarried daughters automatically become members of the HUF. In addition to that, if a child is adopted, then he also becomes a member of the HUF. Moreover, upon marriage, a wife becomes a member of her husband’s joint family.

No HUF arises only from status.

Yes. A family consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.

It is the property, which a man inherits from any of his three immediate male ancestors, i.e., father, grandfather, and great-grandfather.

Yes. As so long as the property which was originally of the joint Hindu family remains in the hands of the widows of the member of the family and is not divided, HUF can continue with female members.

Karta is generally the father of the family who has the right to do all the things for the family and takes all the decisions on the behalf of the family.

Gift by Karta of HUF, a movable property or an immovable property within reasonable limits in favour of his daughter is permissible on the occasion of her marriage.

All members; A son in the womb of his mother at the time of partition; Mother; Wife.

No. A single person cannot constitute HUF. There have to be minimum two members to constitute a HUF.

Coparcener is the person who has the right to demand the share of the property of family if he/she wants to part away with the family with his/her share. Not all members of the HUF are its coparceners. The co-parcener extends to four degrees down the family hierarchy in the following manner:
– 1st degree: Holder of ancestral property for the first time.
– 2nd degree: Sons and daughters
– 3rd degree: Grandsons.
– 4th degree: Great grandsons.

A HUF, as such, can consist of a very large number of members including female members as well as distant blood relatives in the male line. However, out of this, coparceners are only those males who are within 4 degrees in lineal descendent from the common male ancestor. The relevance of concept of coparcenary is that only coparceners can ask for partition. The other male family members; i.e, other than coparceners in a HUF, have no direct claim over HUF property, but can claim only through the coparceners.

Creating a HUF Deed is not mandatory but it’s always better to have a written document in place.

The Karta is traditionally the senior most male coparcener of the HUF. When Karta of the HUF dies, the next senior male member takes over as Karta.

Kerala is the State in which the HUF is not recognized. This is done by Kerala Joint Family System (Abolition) Act, 1975 with effect from 01.12.1976.

No. Section 6 of the Income-tax Act, 1961 clearly contemplates a situation where a HUF can be non-resident also. In fact, HUF can also be Not Ordinarily Resident. A HUF will be considered to be resident in India unless, during the previous year, the control and management of its affairs is situated wholly outside India. In such a case, it will be treated as non-resident HUF. Moreover, in case of a HUF whose manager has not been resident in India in nine out of ten previous years preceding the previous year or has, during the seven previous years preceding that year, been in India for a total 729 days or less, such HUF is to be regarded as Not Ordinarily Resident within the meaning of the Income-tax Act, 1961. As such, it is not necessary for a HUF to be resident in India.

The Income-tax Act, 1961 as well as Wealth-tax Act, 1957 recognise HUF as an independent assessable or taxable entity. This is done by specifically including “Hindu Undivided Family” in the definition of “person”, in section 2(31) of the Income-tax Act. As such, the income earned by such HUF will enjoy all exemptions and deductions; including the basic exemption from income-tax, so far as applicable.

ComplianceIndia can incorporate a HUF in 8-10 working days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please ensure you have all the required documents prior to starting the registration process.