30 July 2013
All Hindu born under Mitakshra Law of Hindu Law are born in 2 status one is individual and the other is HUF. HUF status is available only after the marriage.
The HUF is formed by either gift from the father or mother if there is no ancestral property. If there is ancestral property then the share received from that property is to be shared and that will become the capital of HUF. Otherwise on partition of bigger HUF the amount received is to be treated as the capital and in this manner the HUF can be formed.
The income generated from the capital of the HUF is taxable and the money received from partition done of HUF shall not be chargeable to tax as it is tax paid capital.
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