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Tipsy (importer)     28 April 2008

HUF Retirement and New Partition DEED Format

My Father has Expired on 02/10/2006, I want to Make

1. Past- Dissolution Deed of HUF as Karta as Expired

2. Presnt -New HUF Partition Deed as eldest son becomes
Karta of HUF with Mother and 3 brother as Co9-parcener

3. Future Copy of Partition DEED For future

Please give sample copy iof available

impesolution@vsnl.net


Learning

 9 Replies

D.V.RamaKrishna (Advocate)     28 April 2008

Mr Bharat, Hindu Undivided Family (in short HUF) is an entity known to and followed by those who profess Hinduism as religion. In a HUF the eldest male member in termed as Karta and all others as coparceners. Karta manages the affairs of HUF for the common benefit of HUF members. In the event of death of Karta, the eldest male member of the surviving coparceners steps into the shoes of Karta. There is no such thing as dissolution of HUF like in the case of Partnership Firm, i.e., the question of dissolution arises only in the case of a partnership firm but not HUF because HUF is deemed to be continuing till there is no male member surviving the family or there is partition of the assets of the HUF among the coparceners. So far as your query is concerned with reference to the above, there is no need of any dissolution deed or there is no need of having any deed for the present HUF. With regard to Partition, please remember that partition means separation from one another legally. It means that if you have partition of HUF affairs, then there wont be any HUF left anymore.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     10 May 2008

The legal position is correct as stated by Shri D.V.Ramakrishna Advocate. You can take advantage of concept of HUF by creating many new HUF by a living father for each of adult sons provided the basic concepts of coparsensers is maintained. For example a living father if he has adult sons than each of the faimily of the adult sons can be made as a new HUF by partial partition of existing HUF. And in the eyes of law the HUF of living father as well HUF s of living adult sons will have status of separate HUF and will be treated as separate units for taxation under the Income tax act having basic exemption for income. The corpus for the new HUF must come from the partial partition of the parent HUF. THERE IS DEFFERENCE BETWEEN DISSOLUTION AND PARTITION.The HUF gets automatically dissolved if there is no karta left and hence no dissolution deed is necessary. But after death of original Karta say father the eldest son becomes the karta and the HUF status continues. On the other hand all the major sons do either complete partition among themselves and there will be as many new HUFs as the number of adult sons and the patitioned amount will be the starting corpus of the new HUF. Secondly a living father being karta can either partially partition the HUF making new HUFs and keeping the original HUF continuing. The same thing can also be repeated even after the death of the karta normally father by taking over by the eldest son as karta so this original HUF will continue and as discussed above there can also be partial patitions . All this excercise is useful only if there is taxable income which can be divided by creating new HUFs and bringing down the IT liability.

Ashey   03 April 2009

It was a kind of Lecture .. thanks Mr. Ramakrishnan and Mr.Sashikumar

D.SUBBARAO (karta)     01 October 2009

It is very useful.

Thanks & regards

fateh karan (advocate)     19 November 2009

my father expired in 1983.land was one fourth to mother one fourth in name of father and one fourth each to two brothers. after death of father mutation of his part transfered in favour to motheronly.now wetwo sons wants to make partation of 150 bigha of land.one brother grab land as per his wish and of heighest value.now he says that heis having adverse possession over land since fathers death.not ready to make partation not allowing to even enter in his side.threatnening for concequence.mother filed partation suit in sdm court but withdrawn with this order that she can file suit if any son not giving her part.sir is written partation deed nessary or he will be able toget partation by his so called adverse possession.

fateh karan (advocate)     22 November 2009

sir you are not repliying why so

sujal (Delhi)     23 December 2009

hellow, now i m handling a huf of my dad, he was karta of this huf  now he has expired

now i want to dissoluted this firm & want to know how my dad assest will be share betweem we family member, there is folowing memeber in my family...

me & my wife, my 3 sons, my 2 married sister, my mother, 1 my granddaughter & three daughter in law.?

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     25 December 2009

Why do you want to dissolve the firm, let it continue so that it will be a separate taxation entity.THE ELDEST SON AS KARTA WILL RUN THE FIRM AS PROPRIETORSHIP OF HUF .

No need of any deed, just inform the IT about change of karta and probably other authorities such as sales tax if registered and Shop act dept etc.

venu poddar (propreitor)     12 January 2010

 Sir,

I am repeating what has been asked in the past but my case is slightly different.

My father has expired in 2003.He was karta.My older  brother has seperated in '96.

Myself is younger & i am filing all the IT returns on behalf of father's HUF.

Now I do not want to continue this HUF.

Only assets in HUF are 3 LIC Annnuity pension policies.

My question is that:

LIC is asking for dissolution of HUF if I want to encash those pension policie.

Since  there is nothing like dissolution of HUF & I am now the only male member(since brother has seperated) along with my mother,who should this policy money go to mother or me.I am more than willing to give to mother.How should I present my case to the LIC so that I can encash the policies (Rs 80,000/-) either to me or my mother.

 

 


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