Huf

This query is : Resolved

AVNEESH KUMAR (Querist)
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28 July 2013 A PERSON WANT TO CREATE HUF-
1- WHAT IS PROCESS AND TREATMENT IN INCOME TAX

2- A PERSON CAN DEPOSITS HIS BUSINESS RECEIPTS IN SAVING BANK A/C

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 July 2013 For creation of HUF you require ancestral property. If it is not there then you should take gift from father or mother and it can be taken after marriage. Issue is not needed for creation of HUF.

There are 2 schools of Hindu Law
1) Mitakshara
2) Dayabhaga

Now, it depends you belong to which school of Hindu Law.

HUF can be created by only Hindu.

Only the income generated by HUF out of the funds of HUF and therefore, any income generated by individual cannot be deposited in the bank account of HUF