What is Hindu Undivided Family (HUF)?
Under Section 2(31) of the Income-Tax, 1961, a Hindu Undivided Family is recognised as a separate entity separate from the family members it consists of. Hindu Undivided Family consists of members who are descendants of the same ancestors, including wives of the male members of the family and their unmarried daughters. HUF is not created under any law, but it is recognised under the act. HUF is automatically created under Hindu culture. Jains and Sikhs are not governed by Hindu law but are recognised as HUF under the Income-Tax Act, of 1961. 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.
What is Ancestral Property?
An ancestral property is a property that is passed on from the upper generation to the lower generation due to the will or death of an upper-generation member. Ancestral Property is generally any property that a male member inherits from his father, his grandfather, and his great-grandfather.