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Pradeep   26 April 2018

Rescind involvement in huf

Experts: This HUF was set up by me nearly 20 years ago. Since then my children have migrated overseas and do not want to be involved in the HUF at all.

Is there a process by which they can relinquish their rights.

It will be easier for me to Sell Property etc. And begin wind down.



Learning

 3 Replies

Krishnapur Ananth Nagamani (Advocate)     26 April 2018

They have to make a registered relinquishment deed. The result is each relinquishment returns to the common kitty ie the group who has not relinquished. If all the sons relinquish it will return to you and your wife and daughters. In (1935) 37 BOMLR 692, "the expression " Hindu undivided family " includes females, and is much wider than the expression " coparcenery" which includes only the males in whom the joint family property is vested." 

The purpose of constituting a HUF is merely to distribute the burden of income tax assessment amongst the members of HUF. HUF is formed automatically on your marriage. HUF comprises of wife, sons and unmarried daughters.

Your ability to sell the property and wind up is not dependent upon the fact of there being a HUF, unless the property you desire to sell is in the joint name of all or some of the members of HUF. If the property you desire to sell is solely in your name, the existing HUF is no barrier to sell. If it is shown in Income Tax Assessment Returns as HUF property, then relinquishment by the sons is material for your capacity to sell.

You are the karta of the HUF and you have legal right to sell any property of the HUF by showing legal necessity such as medical bills / expenditure for yourself/wife/unmarried daughters or for marriage of your unmarried daughters.

 

Pradeep   27 April 2018

Sir; They are all NRI's living in different parts of the world. Can they take a relinquishmnt deed and go to the local notary public.

Krishnapur Ananth Nagamani (Advocate)     27 April 2018

your query where your sons can do the relinquishment deed - they can execute and register the relinquishment deed in their country of residence or constitute any person including yourself as their attorney by a special power of attorney duly registered in their country as per the requirements of Registration Act S. 33(c) : (c) if the principal at the time of execution of POA does not reside in lndia , it should be executed before and authenticated by a Notary Public, or any Court, Judge, Magistrate, Indian Consul or Vice-Consul, or representative of the Central Government: 


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