Creation of HUF

[raj malik]

I wanted to open HUF in name of my father & my mother as second member. Is there any need of any gift or will or ancestral property or i can directly introduce cash as innitial capital for starting the business in name of HUF.

[DR.MARIAPPAN GOVINDARAJAN]

The concept of HUF is going to be abolished.

[CASeetharaman KC]

The concept of Hindu Undivided Family (HUF) may cease to exist if the proposals of a recently released consultation paper on Reform of Family Law by the law commission are accepted. As of now no such legislation has been made abolishing HUF's however this could happen if the proposals are accepted

[raj malik]

As of now i want to create HUF only for tax benifit purpose in which there will be only a business income and no immovable property will be involved.

AI Summary

Hindu Undivided Family status may be affected by reform proposals, impacting tax planning for business-only HUFs. A taxpayer asked whether a Hindu Undivided Family (HUF) can be created by introducing cash as initial capital without gift, will, or ancestral property. Respondents noted that no legislation has yet abolished HUFs but a law reform consultation paper proposes repeal, which could change HUFs' future status. The taxpayer intends to form an HUF solely for tax purposes with only business income and no immovable property.