How to form a Hindu Undivided Family?
Certain conditions need to be followed to form a HUF, some of the conditions include:
- There must be a family to form HUF, a single person can not form HUF.
- An HUF is automatically created under the Hindu culture and is recognised under the Income Tax Act.
- HUF must consist of a common ancestor and their descendants along with the wives of male members and their unmarried daughters.
- Along with Hindus, Jains, Sikhs, and Buddhists can also form HUF by creating a family unit and pooling their assets together.
- When any joint family is considered a HUF under the Act, they will continuously be treated as the HUF until any partition between the members of the family takes place.
- There should be a joint family consisting of any ancestral property.