If HUG is partitioned the earlier huf will be dissolved and new huf can be formed
Huf
I am going through a divorce and plan to partition my huf with 2 minor kids and wife. Once the partition is done and everything is divided will my HUF account be dissolved? My Father also has.a HUF which is still not partitioned, when he does the partition of that would that form another HUF in my name as I have kids or will that come to me in personal capacity.?
Asked 4 years ago in Family Law
Religion: Hindu
12 Answers
Once the HUF is dissolved and the properties and assets are partitioned as per the terms , your CA will file a return mentioning that the HUF has been dissolved an the properties divided to the members of the HUF.
Dear Sir,
Dissolution of HUF occurs when partition of HUF's property is done.Partition of HUF can be done at any time i.e. either on Survival of Karta or on death of Karta. Partial Partition of HUF is not allowed as per Income Tax Act 1961. Hence in your case, HUF ceased to exist as soon as your brother partitioned the property.
Hindu Undivided Family (HUF):-
HUF is a family with husband, wife and children (and children’s spouses if any) living together. The property owned by this family will be through lineal ascendants or any ancestors. There are a set of laws that govern property ownership, marriages, taxation etc for a legally declared HUF. IT department of India has a format of taxation for a HUF; tax benefits can be availed from this format.
HUF accounts:-
Karta of a HUF is the senior most male member of the family and in financial terms he can also be called manager of the family. In this account a corpus is created where every family member can pool their income. The corpus will be handled by or authorized to handle by Karta (head of the family). Signature of karta will be required for every transaction from the bank. These accounts are similar to individual saving bank accounts; there will be various tax benefits that are available for an individual’s account while the income of members is being pooled in HUF account.
Features of HUF account:-
There are a few features of HUF account that makes it different from regular saving bank accounts.
- Every member of the family can deposit their income in the common corpus
- Single person’s authority while participation from entire family
- Tax benefits on deposits under various sections
- Corpus can be divided only on agreement of every coparcener of the family
HUF is dissolved only on the partition of property between the members. Please note partly partition of HUF is not approved . Partition means full partition. Draw up a deed of family partition and register the document in sub-registrar office.
In your HUF who is Karta of the family.
Under your family your parents are living with you or separated from you.
If you're living with your parents than your father is karta of the HUF and not you. So you give divorce or not that won't effect HUF.
Yes if the partition is done the HUF shall be dissolved. You can after dissolving form another HUF.
If you are doing partition of HUF property then you have to dissolve the HUF account.
No after partition of HUF father it will not automatically form another HUF you have to form new HUF account
1. the partition by you of your HUF would also involve dividing the funds in the HUF account. So the HUF account will have to be closed
2. the share which you would get when your father partitions his HUF would be your self acquired property and you are not required to hold the same with your kids
HUF will dissolve after partition. To close HUF account have to inform bank. On partition of father HUF, it will be your self acquired property and not HUF in your hand.
1. Once you divide the assets of the HUF amongst the members of your said HUF, the HUF ceases to exist.
2. It is the HUF where your father is the Karta and you are one of the members of the said HUF. If properties of the said HUF is partitioned, it will be in your name and your wife and son will have nothing to do with it during your lifetime.
Dear sir,
The moment partition is affected there will be end to HUF .
Your own HUF shall stand dissolved once you partition the same and distribute the properties to the coparceners after this partition.
Similarly your father's HUF property shall be partitioned among his heirs, your share of property shall again be divided among you and your own children.
