About huf

1.  Queries No 1 & 2 are academic.

Q 3. Yes, she will step into the shoes of Karta.

Q4. Every one is living separatly from each other member of family, it is nuclus and not HUF.

Karta of a HUF is the senior most male member of the family and in financial terms he can also be called manager of the family. In this account a corpus is created where every family member can pool their income. The corpus will be handled by or authorized to handle by Karta (head of the family).

All the members in the family, including your wife, children, their wives and their children. While the male members are called coparceners, the females are referred to as members.A typical HUF consists of a karta, his sons, grandsons, and great-grandsons (all of whom are coparceners), and their wives and unmarried daughters (all of whom are members). The difference between a coparcener and a member is that a coparcener can demand partition of an HUF the members would be entitled to receive maintenance from the HUF.

According to IT act, tax rebates and deductions can be availed under sections 80C, 88 and 80L for HUF account.

Gifts collected up to a worth of Rs 50,000 will be tax free. A father who owns a HUF account can gift a property or money of higher worth to a son who owns a smaller HUF account; but he should specify that the gift is for the son’s HUF and not to him as an individual. Under section 64(2) and 56(2) tax benefits can be enjoyed in such instance.

Corpus can be used for investment in tax free money instruments.

Thus, HUF is a family with husband, wife and children (and children’s spouses if any) living together. The property owned by this family will be through lineal ascendants or any ancestors. There are a set of laws that govern property ownership, marriages, taxation etc for a legally declared HUF. An undivided family, which is a normal condition of Hindu society, is ordinarily joint, not only in estate but also in food and worship.

The joint family continues even in the hands of females after the death of the sole male member;