To form an HUF, all one has to do is to GET MARRIED. Min two people to constitute a family. Husband and wife together make up a family.

Mainly Two HINDU Laws

  1. Dayabhaga (in Assam and West Bengal)
  2. Mitakshara (rest of the Country)

Under Dayabhaga

  • The father is the sole owner of joint family property.
  • No member can enforce the partition of the HUF as long as father is alive

Under Mitakshara

  • Property vests in the HUF itself (not karta)
  • Partition can be enforced within the life time of the father

The Hindu Succession Act 1956 was amended to provide that a daughter too could be a “coparcener” (joint heir) like her brother to joint family’s asset and she too could enforce the partition of the family property to claim her share. Evenafter marriage and forming another HUF with husband, she continues to be the coparcener in her father’s HUF.

  • Unmarried man can not create an HUF
  • Unfortunate death of her father and has no brother then unmarried daughter can be the KARTA
  • Blow funds into the HUF: Clubbing provision, so be┬ácautious. Better to bring from members of bigger HUF who though are relatives but not members of your HUF ( example: father giving to son’s HUF). There are other ways also.
  • Karta can be paid remuneration
  • HUF can never be a partner in a firm
  • Be cautious when lending money to its members and viceversa
  • Enjoys Wealth tax exemptions