CA.VIKRAM KUMAR

  HUF – Hindu Undivided Family HUF coming into Existence. Ø   HUF is   recognized as a person- Sec 2(31) of the  Income Tax Act. As this HUF enjoys the benefits, like basic exemption, 80-C deduction, Sec.54, 54EC, 54F exemption, it is always advantageous to claim a separate HUF status to avail these benefits. But “HUF ” word has not been defined in any statute. Ø   HUF is a creation of Hindu Law. Thus it is formed by status and not by any contract or enactment. Ø   A husband and wife can constitute a HUF, if there was a common inherited property. Creation of HUF }   It can be by way of 1)       Partition 2)       Gift 3)       Will 4)       By Blending 5)       By Reunion HUF Partition Ø   The wife of a Karta or a non-coparcener member cannot claim partition. But at the time of partition Karta’s wife can claim a share e...