TMI BlogTaxation of Hindu Undivided FamilyX X X X Extracts X X X X X X X X Extracts X X X X ..... tion. If partition of HUF is made by Courts, the court will always award equal partition. However, the family may mutually effect partition without going to the courts and mutual partition can be unequal. Partition has to be a total partition. Partial Partition is not recognized under the Income-Tax Act. HUF cannot make any gift of HUF property to co-parceners and non-coparceners. Any gifts made by HUF are void-ab-initio. Therefore, if HUF property is gifted by HUF, then such gifts are void-ab-initio. The gifted property shall be included in the wealth of HUF and not the done. Similarly, the income from gifted properties shall be taxable in hands of HUF and not the donee. The provisions of computing income of HUF are the same fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By payment of remuneration to the Karta and other members of the HUF; By use of loan from HUF to the members of the HUF; Through gift by HUF to its members specially to the female members; Through other methods / devices; Branches of HUF A HUF can have several branches or sub-branches. For example, if a person has his wife and sons, they constitute A HUF. If the sons have wives and children, they also constitute smaller HUFs. If the grandsons also have wives and children, then even they will also constitute still smaller or sub-branch HUFs. As stated above, the HUF is a creature of Hindu Law and these entities are HUFs alongwith the bigger HUF of the father or the grandfather. It is immaterial whether these small ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court needs to be revised / reviewed. Besides the same person can be taxed as both individual and Karta of an HUF . The individual and the HUF are two different units of taxation i.e. two different assesses. Note:- Income includes loss. For the purpose of Section 64 income includes loss. Therefore, under all the provisions discussed above, where the income arising to one person is to be clubbed in the hands of another person, in the relevant loss, the loss shall be taken into account in computing the income of such person. Karta in his individual capacity and Karta representing HUF are two distinct entities. HufF can sublet its contract to Karta in his individual capacity. Income earned by Karta in his individu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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