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HUF creation on marriage

Yash Jain (Chartered Accountant) (26 Points)

15 May 2017

Any idea that when it was amended that HUF can also be created after marriage itself?

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 16 May 2017

1. There was no amendment in law, but existed some conceptions differently. Which were rectified by some court judgements:

= Once the co-parcener marries, an HUF comes into existence as he alongwith his wife constitutes a Joint Hindu Family. This was held in the case of Prem Kumar v. CIT, 121 ITR 347 (All.)

= An HUF need not consist of two male members- even one male member is enough. The understanding that there must be at least two male members to form an HUF as a taxable entity is not applicable. – Gauli Buddanna v. CIT, 60 ITR 347 (SC); C. Krishna Prasad v. CIT 97 ITR 493 (SC) and Surjit Lal Chhabda v. CIT, 101 ITR 776 (SC). A father and his unmarried daughters can also form an HUF. CIT v. Harshavadan Mangladas, 194 ITR 136 (Guj.)

= The Income-tax Act does not indicate that a Hindu undivided family as an assessable entity must consist of at least two male members.P 783-84" (N V Narendernath-v- CWT 74 ITR 190 SC).

= In CIT v. Purshotamdas K. Panchal [2002] 257 ITR 0096 [Gujarat], it was held that:

An individual who receives ancestral property at a partition and who subsequently acquires family, but has no male issue, would hold that property only as the property of the family. Under the Hindu law the wife of the coparcener is certainly a member of the family. Whatever be the school of Hindu law by which a person is governed, the basic concept of a Hindu undivided family in the sense of who can be its members is just the same. Thus, in order to constitute a joint family, it is not always necessary that there must be two male members.