23 November 2014
Hello experts, i belong to a joint family where there in 5 family. My two uncle both are married and two married brother and i m not yet married. I have a family business, all activities are handle my elder uncle. Now whether i can create a HUF where my uncle is a karta and transfer the family business in HUF. and file IT return in name of HUF.
23 November 2014
Yes it can be formed but the business which your family is doing is either as a proprietorship or partnership or any other form of entities.
You must have been filing the returns in some status and have procured the PAN Card.
To create HUF and then transfer the business in HUF will tantamount to sale of business to HUF.
Let your CA work on this and pay his professional fee to clear all problems do not ask for free advise.
Draw a family settlement and narrate in that the business being carried is belongs to HUF and then apply PAN in the name of HUF and change the name of the firm.
But why do you want to do so. You can draw a Partnership Deed in which all the family members can be partners and the business can be carried on in the same name and all the family members shall have their defined share in the business. Parallel you can form the Greater HUF as well as smaller HUF.
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