Hindu United Family

Dear Freinds,

I would like to know how can we form a HUF , what are its merits and demerits. How can we manage HUF .Alongwith please give all additional details.

dear members,

i am shashi. this is my 1st message. here is some stuff on HUF from Business line-

The question of creating a HUF in the strict sense of the term does not arise. What is normally created is a nucleus to a HUF. It is a presumed state.
Your family constitutes a HUF. The initial nucleus to the HUF may be brought in as a gift from an outsider to it.
It may be possible for a coparcener to impress his individual property with that of the HUF after the initial nucleus is available with the HUF.
You may note that impressing of individual property with that of the HUF by a coparcener will attract the provisions relating to clubbing under Section 64(2) of the Act.
The initial nucleus or corpus of the HUF can come out of partition of a larger HUF or by way of will, where the intention is clear that the property should be received by the HUF.

regards.

I have a question regarding HUF owned property:

1. Can a H.U.F. ask its members (by linear descendant) to pay rent for the property being used only by the concerned member?

2. Will the income from rent (mentioned in 1st question) be a part of a regular income from house/property?

3. Will there be any tax-benefit to HUF member paying rent to the HUF? Can he/she claim HRA for the same?

Thanks,
Apra

Income Tax Provisions treat HUF as a Legal Entity seperate from its members. Hence the answer to all of these is YES.

Regards,
--Ashish

Just to Correct you as Per Indian Income tax laws HUF means Hindu Undivided Family and not Hindu United Family.