property which is acknowledged by the parties to the settlement. The other important measure of tax planning for an HUF is to pay remuneration to the Karta and / or other members of the HUF for services rendered by them to the family business. Female members cannot create or form an HUF by their acts even under the Dayabhaga School of Hindu Law. Property received by a coparcener having a family, continues to have characteristic of HUF. CIT v. Champaklal Dalsukhbhai, 81 ITR 293 (Bom.). Arunachalam Chettiar, 34 ITR 421 (PC). An agreement to pay salary / remuneration can also be inferred from the conduct of the parties. Though creating and registering an HUF is fairly easy, complications may arise later. SHOP THE COLLABORATION. After you are allotted a PAN, open a bank account in the name of the HUF. The HUF may or may not charge interest on the loans given. Corpus can be used for investment in tax free money instruments. If the business, capital or investment of the HUF is expanding then such expansion can be done in the individual names of the members of HUF by giving loans to the members from the HUF. Apart from basic exemption of Rs. 1997-98 this method of tax planning will be much easier and it will bring more tax relief to the HUF’s. Online: … Those members are classified in two categories, viz (i) Coparceners, and (ii) Non-Coparceners. The latter two could not under the Hindu Law be regarded as the heirs of the deceased, yet, bearing in mind their near relationship to the widow, the settlement of the dispute was very properly regarded as a settlement of a family dispute – Ram Charan Das v. Girija Nandini Devi AIR 1996 SC 323 at page 329. Under normal circumstances, the rent will be attached to a person’s income and will be taxed according to that individual’s tax slab.
NIL. Reunion is intended to bring about a fusion in the interest and in the estate among the divided member of an erstwhile Hindu Undivided Family, so as to restore to them the status of an HUF once again and therefore, reunion creates a right in all the reuniting coparcener, in the joint family properties which was the subject matter of partition among them, to the extent they were not dissipated before the reunion. It is arrangement between member of a family descending from a common ancestor or near relation trying to sink their differences and disputes, settle and solve their conflicting claims once and for all to buy peace of mind and bring about harmony and goodwill in the family by an equitable distribution or allotment of assets and properties amongst member of the family. Plurality of persons is an essential attribute of a Family. The object of the family settlement should be broadly to settle existing or future disputes regarding property, amongst the members of the family. The Hindu Undivided Family (HUF) is a special feature of Hindu society. An HUF cannot make a Will. 99 ITR 477 (AP), the assessee executed a registered deed of settlement on March 26, 1962, conveying certain immovable properties to his five sons and two daughters out of whom one of the sons was a minor in whose favour a house worth Rs. “Most of the younger generation does not understand these laws, especially because laws around HUFs are getting complicated,”. and the Tribunal rejected the contention of the Assessee. Therefore total tax payable for HUF on income of Rs. They have a son and his family but there is no ancestral property as a corpus of their family. AUD. 56(2)(vi) along with the application to that section and on understanding the intention of the legislature from the section, it could be seen that a gift received from “relative” irrespective of whether it is from an individual relative or from a group of relatives is exempt from tax under the provisions of section 56(2)(vi) as a group of relatives also falls within the Explanation to section 56(2)(vi). WHETHER ANY OF THE MARRIED DAUGHTERS HAVE ANY RIGHT OR CAN CLAIM ANY RIGHT IN FUTURE IN HUF OF FATHER?
These laws are not codified and are read along with the Hindu Succession Act and the Income-tax Act.