Huf creation date
This query is : Resolved
21 August 2013
SIR, MY DOUBT IS REGARDING HUF CREATION DATE. I WANT TO CREATE HUF OF MY CLIENT . HIS MARRIAGE DATE IS 10/10/1993. BUT AT THAT TIME HE HAS NOT PREPARED ANY HUF DEED. HE DOESNT HAVE ANY ANCESTRAL PROPERTY. NOW HE WANT TO START HUF BY RECEIVING GIFT FROM HIS BROTHER. MY QUESTIONS ARE:
(1) WHICH DATE IS CONSIDERED AS HUF CREATION DATE-DATE OF MARRIAGE OR DATE ON WHICH HE RECED GIFT FROM HIS BROTHER AS HE DOESNT HAVE ANY ANCESTRAL PROPERTY
(2) WHICH DATE SHOULD BE MENTIONED ON PAN CARD?
(1) WHICH DATE IS CONSIDERED AS HUF CREATION DATE-DATE OF MARRIAGE OR DATE ON WHICH HE RECED GIFT FROM HIS BROTHER AS HE DOESNT HAVE ANY ANCESTRAL PROPERTY
(2) WHICH DATE SHOULD BE MENTIONED ON PAN CARD?
22 August 2013
https://www.caclubindia.com/share_files/huf-a-tax-saving-tool-56088.asp#.UhWxx3-UBek
22 August 2013
TY CA. VISHNU FOR REPLY. BUT STILL THE DOUBTS REMAIN UNSOLVED. CAN U CLARIFY MY QUESTIONS? ITS VERY URGENT.
22 August 2013
HUF comes in to existence on the date of marriage. gift is not the criterion. you can mentioned date of marriage or date of agreement. For huf karta and 1 more member is required hence it can be formed on the date of marriage or later.
22 August 2013
and last question... is ancestral property or some corpus fund pre requisite for huf creation?
28 July 2024
Creating an HUF (Hindu Undivided Family) does not necessarily require the presence of ancestral property or corpus funds as a prerequisite. Here’s a detailed explanation of the requirements and considerations for forming an HUF:
### **1. Basic Requirements for HUF Creation**
**1. Formation and Constitution:**
- **No Specific Corpus Required:** An HUF can be created without any initial corpus or ancestral property. The creation of an HUF primarily requires the declaration of its formation and registration with the Income Tax Department.
- **Karta and Members:** An HUF must have a Karta (head of the family) and other coparceners (members). The Karta is usually the senior-most male member, and coparceners include descendants such as sons, grandsons, and in some cases, daughters.
**2. Formal Deed:**
- **HUF Deed:** While not legally mandatory, it is common to execute a formal HUF deed or declaration to document the formation of the HUF. This deed includes details of the Karta, coparceners, and the nature of the HUF.
### **2. Corpus or Initial Capital**
**1. Initial Corpus:**
- **Not a Requirement:** You do not need a specific corpus or ancestral property to create an HUF. The HUF can be created with or without an initial corpus, and it can begin with any assets contributed by the Karta or members.
**2. Contribution of Assets:**
- **Voluntary Contributions:** The Karta or other family members can contribute assets, including cash or property, to the HUF at any time. These contributions can be used to build the HUF’s corpus.
- **Not Mandatory at Formation:** The initial formation of the HUF does not require the contribution of any specific assets.
### **3. Ancestral Property**
**1. Definition and Role:**
- **Ancestral Property:** Refers to property inherited by the HUF from ancestors, which is passed down through generations. While it can form part of the HUF’s assets, it is not a prerequisite for the formation of the HUF.
- **Use of Ancestral Property:** If the HUF owns ancestral property, it can use that property as part of its assets, but the HUF can be created without it.
**2. Corpus Fund and Contributions:**
- **Corpus Fund:** A corpus fund is a pool of funds or assets contributed by the members. It is not mandatory for the creation of an HUF but can be established to manage and invest resources.
### **4. Practical Steps for Formation**
**1. **Documentation:**
- **HUF Deed:** Prepare a formal HUF deed or declaration to document the formation and structure of the HUF. Include details of the Karta, coparceners, and any initial contributions.
**2. **PAN and Registration:**
- **PAN Application:** Apply for a PAN (Permanent Account Number) for the HUF from the Income Tax Department. This is necessary for tax purposes and financial transactions.
**3. **Bank Account:**
- **Open a Bank Account:** Open a bank account in the name of the HUF. The account can be used for managing the HUF’s finances, including contributions and income.
**4. **Contributions and Investments:**
- **Manage Contributions:** Family members can contribute to the HUF’s corpus as desired. These contributions can be in the form of cash, property, or other assets.
### **Summary**
- **Ancestral Property:** Not required for the formation of an HUF. An HUF can be created with or without ancestral property.
- **Initial Corpus:** Not a prerequisite. The HUF can start with any assets contributed by the Karta or members.
- **Documentation and Registration:** Form a formal deed, apply for a PAN, and open a bank account for the HUF to manage its financial transactions.
Forming an HUF involves documenting its formation and structure but does not necessitate an initial corpus or ancestral property. The HUF can be built over time with contributions from its members.
### **1. Basic Requirements for HUF Creation**
**1. Formation and Constitution:**
- **No Specific Corpus Required:** An HUF can be created without any initial corpus or ancestral property. The creation of an HUF primarily requires the declaration of its formation and registration with the Income Tax Department.
- **Karta and Members:** An HUF must have a Karta (head of the family) and other coparceners (members). The Karta is usually the senior-most male member, and coparceners include descendants such as sons, grandsons, and in some cases, daughters.
**2. Formal Deed:**
- **HUF Deed:** While not legally mandatory, it is common to execute a formal HUF deed or declaration to document the formation of the HUF. This deed includes details of the Karta, coparceners, and the nature of the HUF.
### **2. Corpus or Initial Capital**
**1. Initial Corpus:**
- **Not a Requirement:** You do not need a specific corpus or ancestral property to create an HUF. The HUF can be created with or without an initial corpus, and it can begin with any assets contributed by the Karta or members.
**2. Contribution of Assets:**
- **Voluntary Contributions:** The Karta or other family members can contribute assets, including cash or property, to the HUF at any time. These contributions can be used to build the HUF’s corpus.
- **Not Mandatory at Formation:** The initial formation of the HUF does not require the contribution of any specific assets.
### **3. Ancestral Property**
**1. Definition and Role:**
- **Ancestral Property:** Refers to property inherited by the HUF from ancestors, which is passed down through generations. While it can form part of the HUF’s assets, it is not a prerequisite for the formation of the HUF.
- **Use of Ancestral Property:** If the HUF owns ancestral property, it can use that property as part of its assets, but the HUF can be created without it.
**2. Corpus Fund and Contributions:**
- **Corpus Fund:** A corpus fund is a pool of funds or assets contributed by the members. It is not mandatory for the creation of an HUF but can be established to manage and invest resources.
### **4. Practical Steps for Formation**
**1. **Documentation:**
- **HUF Deed:** Prepare a formal HUF deed or declaration to document the formation and structure of the HUF. Include details of the Karta, coparceners, and any initial contributions.
**2. **PAN and Registration:**
- **PAN Application:** Apply for a PAN (Permanent Account Number) for the HUF from the Income Tax Department. This is necessary for tax purposes and financial transactions.
**3. **Bank Account:**
- **Open a Bank Account:** Open a bank account in the name of the HUF. The account can be used for managing the HUF’s finances, including contributions and income.
**4. **Contributions and Investments:**
- **Manage Contributions:** Family members can contribute to the HUF’s corpus as desired. These contributions can be in the form of cash, property, or other assets.
### **Summary**
- **Ancestral Property:** Not required for the formation of an HUF. An HUF can be created with or without ancestral property.
- **Initial Corpus:** Not a prerequisite. The HUF can start with any assets contributed by the Karta or members.
- **Documentation and Registration:** Form a formal deed, apply for a PAN, and open a bank account for the HUF to manage its financial transactions.
Forming an HUF involves documenting its formation and structure but does not necessitate an initial corpus or ancestral property. The HUF can be built over time with contributions from its members.
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