TaxTMI 
TaxTMI 
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.
Creation of HUF
14 Feb 2019 
3 Replies 
1003 Views Asked by
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. (AI Summary)
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. (AI Summary)