guru (chartered accountant) (61 Points)
23 April 2011A hindu person dies intestate with immovable property left behind. Four heirs now share it equally as first class heirs. Property was originally acquired by him from self generated funds.(Self acq. Property)
Whether the heirs can constitiute HUF with such property? Does the property is required to be inherited from grandfather to constitute HUF ?
Pankaj Arora
(Learner)
(3134 Points)
Replied 23 April 2011
Its not necessary that only grandfather can give immovable property to HUF any member can give amount or gift to HUF but HUF’s member can not give anything to their HUF…
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 23 April 2011
for the self acquired property , HUF formation is not necessary, legal heirs will get their share in proportionate way.
HUF consitution is made for joint family income, and taxability of that , if the property is subject to regular income, then each married co-pancer can form HUF of own and put the income of ancestral property there.
HUF formation in name of dead person does not exist as per laws. instead they can form a trust in his name.
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