A Hindu Undivided Family is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. Hindu Undivided Family is treated as a person under section 2(31) of the Income-tax Act, 1961. HUF is a separate entity for the purpose of assessment under the Act. A HUF cannot be created under a contract, it is created automatically in a Hindu Family. Jain and Sikh families even though are not governed by Hindu Law, but they are treated as HUF under the Act.
For the formation of HUF, we need to make a HUF deed. HUF deed is a legal document that consists of co-parceners lineally descended from a common ancestor. The co-parceners of the Hindu undevided family also include all persons lineally descended from a common ancestor and include their wives and unmarried daughters. A coparcener is a person who is entitled to his/her share of the property.
HUF is also formed with or without a legal deed, but it is always advisable to pursue a business with a written document. HUF deed is a legal deed consisting of details of membership of the HUF, the source of funds, and such other details as may be prescribed on it. The Deed acts as proof of the existence of the entity that has been formed.
Agreement of HUF
This agreement of HUF is executed amongst the following persons.
| No | Status of person | Name | Address | Age |
| 1
|
Karta
|
Adult | ||
| 2
|
Co-parcener [also write relationship with the karta, like the wife of the karta, son of the karta, daughter of karts, etc.] | Adult |
Persons agree as follows:
| Section | Particulars |
| Name of HUF | |
| Address of HUF | |
| Date of commencement of HUF |
The above persons are jointly referred to as co-parceners. The karta do with this declare that he/she is the karta of the HUF and persons as mentioned above are co-parceners of the HUF. Further, the karta received on behalf of the HUF the following gift from their Father which formed the corpus of the HUF.
| Nature of Gift |
This agreement is made on the following stamp paper.
| Amount of stamp paper | |
| Identity number of stamp paper |
Persons have read and understood this agreement and solemnly affirm that the information above is true and correct and agreed to acknowledge the same without any pressure from any side and provide the signatures.
| Date | |
| Place |
–
| Karta | Signature of Karta | Photo of Karta |
| Co-parcener | Signature of Co-parcener | Photo of Co-parcener |
Author Bio
Is capital received as gift compulsory? who can give gift to HUF?
can the karta ask for rent while passing the business to the next person
In detail the karta is asking for rent from his son and the karta had not done anything while staying in business just took debt from others so can he ask for money?
Yes, the Karta can ask for rent while passing the business to the next person, but in this case, the property in the name of the Karta is must needed
sir, but what will be the description of document (affidavit or any other article or agreement) to be mentioned in purchasing of stamp paper. for example in partnership deed (article 46).
Agreement
thanks Sir for the information. I had been looking for this.
Could you please also mention about the samp paper to be used for the HUF deed and the amount of stamp paper?
You should use Rs 500 non-judicial stamp paper for that