HUF CREATION

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25 December 2009 What are the requirnment for creation of H.U.F ?
What are the advantage of H.U.F ?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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25 December 2009 As per Hindu law; members of family represent HUF. It means HUF is always there. There is no question of formation.

Regarding taxability in the Income Tax Act; HUF funds (nucleus) should be there. Property inheritted from father is known as nucleus of HUF.

If no nucleus is there; HUF can receive gifts from relatives.

Once nucleus is there; HUF becomes tax entity.

The benefits of HUF is that additional Rs.1,50,000/- exemption limit can be availed year to year togetherwith benefits of Section 80C etc.

CA Rakhecha,Surat