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Huf

S S Dahale ( Agri and business) (439 Points)

16 April 2016

How many HUF one can institute or form as per IT act , as Karta of those HUF ? with having different combination from his family members ( wife and two sons), i feel as many combination he is able to DO like

1) He as karta of HUF-A and his wife as member , with elder son as coparcener

(2) He as karta of HUF-Band his wife as member , with younger son as coparcener

(3)He as karta of HUF-Cand his wife as a sole member ,

(4) He as kartaof HUF-D and , with elder son as 1 st coparcener and younger son as 2 nd coparcner

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12 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 16 April 2016

one karta = one huf.

an individual can be karta of only one huf at a time.

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S S Dahale ( Agri and business) (439 Points)
Replied 16 April 2016

This notion is wrong , in mumbai , in fort area, kandivali, borivali, I have seen differeent name plates within a buiding , or group of buildings having owners as HUF A with XXX as karta , HUF B with XXX as karta , HUF C with XXX as karta , HUF D with XXX as karta , HUF E with XXX as karta , HUF F with XXX as karta

S S Dahale ( Agri and business) (439 Points)
Replied 16 April 2016

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 16 April 2016

as far as i know and according to prov. of the act., there is possibility of a HUF within a HUF but not diff. HUF with same karta.

S S Dahale ( Agri and business) (439 Points)
Replied 16 April 2016

Provison as per IT act is clear , one person from a family can form several entities = HUF , he being karta of same and all other ones, and IT authorities do issue diffrent PAN Nosand cards to all those HUF

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 16 April 2016

pls enlighten with the relevant sections of it act. it wud be pleasure learning something new.

CA Raj Doshi (Practising CA) (8939 Points)
Replied 17 April 2016

Please gather information regarding names of huf , their karta and members and then analyse the situation. Our answers are based on law unlike your queries which is based on a fishing expedition.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 17 April 2016

one karta can make only one HUF

however he can be karta of other HUF( in case of demise of original karta) where he was a coparcener,

raghavan (self) (611 Points)
Replied 17 April 2016

huf formation cannot be under one (karta) will and if any source is for welfare of family...it includes all his descendants incl his wife but not his sisters. If a person get funds from Another forefathers or in different combination with brothers and sisters he can be karta of another hug also. This happens only in joint business property and one cannot create huf excluding family members as name itself suggest undivided family....is common funds and otherwise litigation arises byclaim of other family members and descendants.

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raghavan (self) (611 Points)
Replied 17 April 2016

Is. ...he could not exclude his sons and descendants from Huf at his will. All descendants are automatically included by birth.

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S S Dahale ( Agri and business) (439 Points)
Replied 18 April 2016

What has been enacted in IT law,--as far as HUF creation with same Karta -( must be a married person ) , the same has been practised by accountant fraterneity ( consultants ) , and after due diligence approved as HUF's as same Karta heading different HUF with diffrent set of family persons as its coparceners /member , and further IT dept to issue PAN card / cards for those HUF.

mind well no one can make a fishing expedition , in such circumstances. as some have pre connocanated notions that one karta can make one HUF..which is wrong assumption / presumption.

as per recent judgement from Hon.Supreme Court . A married lady person of a family can form a HUFas Karta., or either married or unmarried lady ( must be a member of HUF) can further head as Karta, in the case of demise of original Karta ( male person) of existing HUF/s, in that case whether that lady person is elder / younger is im-material.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 18 April 2016

@ ss dahale ji.... i thought you would give reference to some sections in the act, but in case you didnt do that let me share a link where it is written that multiple huf cant be created by same karta and it is prohibited by law. Kindly go through this link.. https://incometaxmanagement.com/Pages/HUF/23-Concept_of_Multiple_HUFs.H T M L