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CAN ALL MEMBERS OF HINDU UNDIVIDED FAMILY ASK FOR ITS ASSETS?

Courtesy/By: M J Ronald | 15 Aug 2018

Only a person who is Hindu can have an HUF as the word suggests. The word Hindu is used in a liberal way and includes persons of Jain, Sikh and Buddha religion and hence religions like Muslims, Parsis, Jews and Christians cannot have an HUF. An HUF can have four generations of descendants from a common ancestor which is a creation of law and cannot be created by acts of the persons.

The right to ask for partition of the HUF assets to claim his/her share is available exclusively only to the coparcener. The other members do not have the right to ask for a partition but they will get their share in the property when the partition takes place. If the coparcener is the daughter (after the amendment in the law) she can also ask for partition of the assets of the property.

Since the income in India is taxed based on the residential status, it is important to understand how the residential status of the HUF is determined, as it is not a physical person. It is not necessary that for determining the control and management of the HUF, the physical presence of the Karta should be there. An HUF can be resident of India and where the Karta is residing outside India for the whole years, but the affairs of the HUF are managed by a manager under direction and guidance of the Karta.

Courtesy/By: M J Ronald | 15 Aug 2018