In this case our HUF income will be treated as seperate income or it will be added to the income of my wife or mine. Can they continue the HUF? In addition, HUF is also beneficial to taxpayers with a higher savings rate.
URGENT PLEASE.......... Every member of the family can deposit their income in the common corpus, Single person’s authority while participation from entire family, Tax benefits on deposits under various sections, Corpus can be divided only on agreement of every coparcener of the family. Any income that is derived from the below may be regarded as income of HUF: • Profit from business including profession • Income from house property • Capital gains • Other sources Given that the HUF is a separate legal entity; it is not entitled to any salary income.
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After the commencement of the Hindu Succession (Amendment) Act, 2005, no court shall recognize any right to proceed against a son, grandson or great-grandson for the recovery of any debt due from his father, grandfather or great-grandfather solely on the ground of the pious obligation under the Hindu law, of such son, grandson or great-grandson to discharge any such debt. There can be a strong sense of insecurity among members that can keep the corpus of the account empty and as long as corpus is empty the account is non functional. He is manager of the assets and income of the HUF. Minimum two members are required to form a HUF, constituting a joint family. This article provides detailed information on the account opening procedure of HUF (Hindu Undivided Family) account. Karta of a HUF is the senior most male member of the family and in financial terms he can also be called manager of the family. what is the procedure to open a HUF a/c in the bank ? The Hindu Law though does not govern Buddhists, Jains, and Sikhs; it can be treated as a HUF for taxation purpose.
we have all the documents with us including PAN Card in the name of HUF. Normally, the senior- most member of the family acts as karta. He is return filed upto 31st March 2007. This entitles HUF to obtain a separate PAN card and bank accounts in the name of the HUF. I received cash gift from my mother-in-law Rs. These accounts are similar to individual saving bank accounts; there will be various tax benefits that are available for an individual’s account while the income of members is being pooled in HUF account. In such a case, the business may be converted into a partnership firm. This is particularly asked because bank has refused to open as there is no male member other than the Karta. Therefore, in your case, you can become karta , but before that its better if you get an agreement signed among all HUF members stating that your father , owing to his age , is passing on kartaship to you and that other members are agreeing to it. The concept of an HUF has basically evolved from ancient Hindu law. An adopted child can become a member but he/she cannot become a coparcener(as per decision given by court). (even if they are financially dependent on him) PLEASE REPLY .. 2.