HINDU-UNDIVIDED FAMILY ANALYSIS

Hindu-Undivided Family Analysis

1. Huf doesnot arise from a contract.HUF is a creation of law.After marriage,as soon as a child is born,HUF comes into existence.HUF consist of father,sons and daughter.Wife is not part of HUF.
2. Sons,daughters and the father are co-parceners and have right to demand partition.
3. Mother is not co-parceners and cannot demand partition.
4. HUF cannot give gift if HUF property to co-parcener and non-coparceners.Any gift by HUF are void-ab-initio.
5. The provisions of computing income of HUF are the same for a normal assessee.
6. No capital gain will arise in case of distribution of partition of HUF as pwer section 47 of the Income -tax Act.
7. Partition of HUF takes place on the date properties are actually divided.There must be physical division of the properties
8. Any remuneration paid by HUF to karta or any other member of HUF for services renderd by him in conducting family business,the remuneration is deductible if remuneration is 

• paid under a valid and bona fide agreement
• in the interest of and expdient for the business of family and
• reasonable and not excesive.