Query on HUF Formation/Existance

HUF's assets are separate from Personal (individual) assets.. in your question as mentioned time and again the assets are A's and some were bestowed on him after the death of his father. I am answering under this premise:

Situation I) HUF Comes into existence as per current law on the date of marriage but personal assets don’t become HUF's assets

Q1) Yes there is an existence of a HUF but without any assets

Q2) No, until the death it would be A's income post that W's income and the return of A would be filed under the assessee "Estate of Mr. A"

Q3) According the HUF i.e. Mitakshra Rule, the eldest male member is the Karta of HUF... so his eldest son would become the Karta

Q4) Refer Q2

good one

Thanks Nicky ,

But plz inform me some more,

1) "Estate of Mr. A"   and A huf are same or there is any difference.

2) By A & W income u mean A HUF income or their individual income.

3) If elder son will become karta then how post a death w will get that income.

4) Till 31.03.2010 there is no rental income from Property. It is the 1st year this property will generate rental income.

5) What are the merits and demerits of treating that property huf property instead of w individual property.

Originally posted by : CA ANAND JINDAL
	Thanks Nicky , But plz inform me some more, 1) "Estate of Mr. A"   and A huf are same or there is any difference. 2) By A & W income u mean A HUF income or their individual income. 3) If elder son will become karta then how post a death w will get that income. 4) Till 31.03.2010 there is no rental income from Property. It is the 1st year this property will generate rental income. 5) What are the merits and demerits of treating that property huf property instead of w individual property.

 Dear Sir,

HUF is also an individual in the eyes of law. for better understanding of yours... treat huf as a partnership firm of MrA. then u may know how to look at the term HUF.

now answering your questions

1 ) As said above they are both different.

2) individual incomes only. say A's HUF income if u want the income of HUF.

3) It is customary to treat incomes from ancestrial properties as income in the hands of a HUF.its upto the HUF to decide how much to share to the members of the HUF.wife and karta are the members of the HUF just as partners of a firm.

4 ) Let it be. U decide where u want to show, be it in the hands of W , or the HUF and change the title of the property accordinlgy.

5) simple,,, ur dividing incomes and thereby may benefit from tax slabs.

correct me if i am worng anywhere.

Dear Mahesh thanks for answering the post...

Dear Anand,

Extrememly sorry for the delay..

1) They are different "Estate of Mr. A"  is nothing but a return of Mr. A had he not expired viz-a-viz HUF totally seperate legal entity.

2) Individual Incomes and no more.

3) See for an personal asset to be called an HUF's assets is has to bestowed upon during the life time of the individual it cannot be said to be transferred to HUF..and W would get the income as the asset would be hers

4) So no problem

5) Merits and demerits one discusses only when there is a possibilty here you dont have an option simply to treat an asset as a HUF's assets or personal asset..

Hello members,

The assessee(Mr. S )received property from his father ( immovable property) and thereafter he has filling

his returns in his HUF status ie Mr. S ( HUF) ( only rental income). Now he wishes to file the same in his

Individual status. ( Mr. S). He has no other income of his own. So can he file the property ( received from his

father) income in his individual status. 

Thanks in advance