H.U.F will be assessed if the following two conditions are satisfied which are as under.
There is a joint family property producing taxable income: - if there is any joint family property which fetches income will be taxable and assessed like
Ancestral property: - ancestral property means any property which comes as inherits to the assesse like grandfather or grandfather property.
- Property acquired with the aid of ancestral property: - any accretion to the ancestral property and any property acquired with the aid of ancestral property are included under family property.
Self-acquired property converted into family property: - if any member of the family acquired any property by his personal efforts but gives this same property to all the family common property, such property will also be called family property. The income of such property is now deemed to be the income of the transferor if conversion took place after 31-12-1969.
There is a Hindu Undivided Family: - it is not necessary that there should be a coparcenership. Under income tax, the assessment is done to H.U.F and not the Hindu Coparcenary. An HUF may consist of single male member and widow of deceased male member. The income tax law nowhere indicates that an HUF must have at least two male members. (Gowli Buddanna Vs CIT 1966 60 ITR 293.
The principal also applies to where joint family property is partitioned and property is allotted to a coparcener who has a wife but no male. In such a case the income of the property is assessable as the income of the HUF composed of the member and his wife and cannot be assessable as the individual assessment.
An unmarried person receiving certain properties on partition cannot be assessed as Hindu Undivided Family as one member cannot consist family. Therefore the income from such property is assessed as his individual income unless he marries (C.Krishna Prasad vs. CIT 1974 97 ITR 493.
A Hindu Undivided Family is assessed through Karta or Manager. Generally the senior most male member of the family is Karta of the HUF but if the Karta wishes to give powers of the family to any other person, he can appoint him as the manager of the family who will run the HUF firm.
A Hindu female is not a coparcener and has no qualification to become the manager of the family. But in Hindu undivided family consisting of the mother and her minor sons, the mother can represent the family as the guardian and assessment and recovery proceedings may be taken against her in that capacity(Sushila Devi Rampuria vs. ITO(1960) 38 ITR 316.
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