We are residents of Mumbai and have a HUF in the name of our father who owns several movable and immovable properties. He has three married sons and their relatives are members of the HUF. After my father’s death, my elder brother worked as a Karta in the Hungarian ForintWe plan to completely divide the HUF and distribute the property equally among its co-owners. Will the property received by the married children belong to their respective HUFs or will it be their individual property?
As you are a resident of Mumbai, you are governed by the Mitakshra School of Hindu Law. Under the Mitakshara school of Hindu Law, all sons and daughters descended from a common male ancestor up to three generations are coparceners, and other women (wives of male coparceners) are members of the HUF. After the coming into force of the Hindu Succession Act 1956The concept of ancestral property is no longer valid unless the property was inherited before the commencement of the Hindu Succession Act, 1956.
All you need to know about HUF rules
The legislation relating to HUFs is not fully codified and is usually derived from judicial pronouncements from time to time. Over the years, various amendments to the Hindu Succession Act have complicated the legislation relating to succession to assets of a HUF.
Each co-sharer acquires the property as his or her own in the total partition of a HUF. Since three generations of sons and daughters constitute co-sharers in the HUF of the male ancestor, the sons and daughters are entitled to receive a share of the property allotted to the co-sharer representing the family. In such a case, the property received by the male co-sharer in the partition will not be deemed to belong to that son’s HUF, but to all the co-sharers in his family on an individual basis. The asset received by such co-sharer will be divided equally among the members of his family.
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Balwant Jain is a tax and investment expert and can be contacted at [email protected] and @jainbalwant on his X account.
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