HUF (Hindu Undivided Family) Definition
What is HUF?
Well, HUF means Hindu Undivided Family.
Who can form HUF?
If you, your spouse and your children are undivided than you can form HUF. A HUF comes into existence by nature and no formal deed needs to be register for its creation.
How to Create/Wealthy in HUF?
The Capital/Wealth of of the HUF can be created by way of gift proceeds or through ancestral property. It is however, advisable to document the receipt of gift proceeds (money) received by the HUF.
Note: Please make sure that you have analyzed the tax implications of such transaction based upon facts of your case.
HUF is also known as Joint Family.
Six key aspects of Joint Family are:-
- all members live under one roof
- share the same kitche
- three generations living together (though often two or more brothers live together, or father and son live together or all the descendants of male live together)
- income and expenditure in a common pool- property held together.
- a common place of worship
- all decisions are made by the male head of the family- patrilineal, patriarchal.
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