Please arrange for my review of HUF deed of your family to answer your questions because HUF deed has clauses of dissolution of HUF and its account operations in the Bank ,disposals of property under HUF and others.
We have a HUF in which besides me, my wife & my two major Sons are there. Sons are not interested in having a HUF account & hence want to dissolve it. Kindly help
Please arrange for my review of HUF deed of your family to answer your questions because HUF deed has clauses of dissolution of HUF and its account operations in the Bank ,disposals of property under HUF and others.
dissolution of HUF can be done by entering into deed of partition for division of properties by metes and bounds
2) it should be duly stamped and registered
3) In the case of total or complete partition, the Hindu Undivided Family ceases to exist as such and therefore, where there is a proper claim for partition and where the same is accepted by the AO, the Hindu Undivided Family ceases to be assessed as an HUF after the date of total partition.
4) where a genuine complete partition takes place and some property is divided among the persons entitled to the share on partition, the income from the partitioned assets is liable to be assessed in the hands of the smaller branches of the HUF formed by the coparceners of a bigger Hindu Undivided Family
5) you can enter into memorandum of family arrangement recording the partition nut AO has to be satisfied that partition has taken place
Yes, the HUF account can also be closed after dissolving the HUF. This is a time consuming and tedious process.
I will suggest to keep and continue the HUF account for purpose of TAX savings. But still you want to Dissolve the HUF by way of partition of movable and immovable property and register it with registrar.
If you want to continue with HUF then you can simply remove your son and keep the HUF going on.
Otherwise you are free to dissolve the HUFVat your will.
So decide accordingly.
Have to execute partition deed to dissolve HUF. Oral partition also valid. Dissolve Huf by declaration and distribution of share by 1/4th share each.
1. A registered partition deed can be made dividing all the assets of the Huf among it's members and closing it. You along wife and son may sign same and register it.
- You can dissolve the HUF , after partition of property /assets .
- Further, Partition of HUF can be done at any time i.e. either on Survival of Karta or on death of Karta , but partial Partition of HUF is not allowed.
- Further, all the members should to agree to dissolve the HUF , under a partition.
- You should enter into a partition deed or settlement agreement with your son and wife , after sharing the properties /assets of the HUF .
You may go ahead with the partition of the property and as soon as the same is done, the HUF will be dissolved.
Regards
Dear Sir,
The said HUF will be dissolved and the properties of the it will be shared among the members.
1. ALL the HUF members can pass a resolution and execute a registered "Dissolution Deed", with all necessary clauses for distribution of HUF properties etc....,
2. The above Deed will be required during filing Income Tax Returns of HUF and also by individual beneficiary persons.
3. Use the help of a local CA or CS.
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.
all members have to agree to dissolve an HUF
Since all the coparceners have right in the assets of the HUF, so the Karta cannot disentitle possess any coparcener of his right. In case the coparcener demands partition of the HUF's assets, the karta has to give the coparcener his share from the assets of the HUF
If all the coparceners decide to dissolve the HUF, it may be done so by way of partition of the assets owned by the HUF. Each coparcener would be entitled to a particular share in the HUF, according to the provisions stated in the Hindu Succession Act, 1956