HUF (Hindu Undivided Family) is a category under Hindu Law that is not common in other religions. All assets of HUF are jointly owned by all members. While each member’s share in HUF assets varies with death and birth in the family, no member can assert his interest in HUF property unless a division.
Types of divisions officially under Hindu Law and Taxation Law
Under Hindu Law, either the entire division of HUF assets can occur. Under the subdivision, all the assets of HUF are not given according to all members. A sub-division is said to have been formed when only a few of the HUF assets were distributed among its members.
In the case of a split group, tax legislation is treated as if no split occurred and income from the transferred property is taxable in the hands of the HUF even though the income may be favorable to the owners of the asset down split
Who can ask for a division of HUF assets
All coparceners have the right to ask for a division or file a suit for division, but a proxy cannot ask for a division but may acquire a share in HUF property if a genuine vessel happened. All male members, born in the family or adopted, as well as the daughters of co-partners, as well as team members, but all women come into the family through the purity of a marriage of simple people. The Karta may not cancel a copy of its right to HUF property.
This situation will result in a split. Although legal under Hindu Law, it is not legal under income tax as discussed above.
How assets are distributed during the HUF split
And if all of the assets of the HUF are made, all coparceners get their shares in the property. Following the amendment in 2005, Article 6 of the Hindu Research Act, 1956, daughters also made coparceners and their rights were the same as those of sons, and thus sons and daughters received equal rights in HUF property. divided. Not only all living beings but also the child in the womb born later are eligible to share in the HUF property. While the division reigns between the father and her son, the mother also receive the same equality as the son.