Nishkam Gupta 28 June 2023

2 hufs of same name and karta

I had registered a HUF comprising my mother, self and wife after my father expired in 2015. Date of incorporation was kept 2010 and I named it as my name NG HUF as I understood HUF is to be usually named as "name of karta HUF". I have a married sister with 2 children but she is not coparcener in this HUF as I was not clear on her eligibility. I understand as per law however, she and her children have every legal right in this HUF assets. In 2022, I had a daughter. Now I want to register an HUF of myself, wife and daughter. I am not sure if a 2nd HUF registration with my self as karta and name as NG HUF with other details of Karta being same as the 1st HUF is legal from IT standpoint. 1st HUF technically was my fathers HUF and this would be my HUF. But since I already named the first HUF as NG HUF, seek expert opinion on whether this is legal and if there is a judgement on similar case.

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Quick Summary

An individual registered an HUF in 2015, naming it after himself as Karta, but backdated its incorporation to 2010. Now, he wishes to register a second HUF with himself as Karta, his wife, and his daughter, also intending to use the same name. He is seeking clarification on whether this is legally permissible from an income tax perspective, especially since the first HUF was technically his father's. The discussion also touches upon the eligibility of his married sister and her children as coparceners.