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Nov,06,2025, 14:00 hrs
Rights of a daughter in HUF property
Balwant Jain , Tax and Investment Expert
guest: Can a widow with her marriage daughter create an HUF in the name of the widow. Can she take the name of son in law and grandson as coparceners or members of HUF?
:
Widow with a daughter whether married or unmarried cannot create an HUF. There have to be minimum two coparceners to constitute an HUF. The widow is not a coparcener nor the son in law and son of a daughter. Only sons and daughters from a common male ancestor can become coparcener in an HUF.
guest: I have one son and two daughters as coparceners. I am 75 now. Want to dissolve the HUF with one house. What are the steps to dissolve it? Can the daughters make a gift of their share to their brother without receiving any money ?
:
The HUF and HUF assets are two different concepts. An HUF can not be dissolved however the HUF assets can be fully distributed amongst all the members, coparceners by executing a full partition of the HUF assets. For that you will have to get a partition deed made and executed between all the members and coparceners of the HUF. The intimation of such full partition has to be submitted to the income tax department and an order recording of the full partition has to be obtained failing which the partition will not be recognized by the income tax department. You may have to pay stamp duty paid on such partition deed based on the value of the all but one part of the value of the assets of the HUF. As regards your second question on whether daughters can gift their shares as coparceners to their brother without receiving any money, the answer is yes. They can relinquish their rights over the HUF property through execution of the release deed or under the partition deed itself.
guest: My father was the karta of an HUF. I was a major when my father passed away intestate leaving behind me his only son (present karta) and my sister his only daughter (we both are twins) and my mother. My father passed away in 2019. the property which was in my father’s name (not HUF) devolved upon we three legal heirs as 1/3 share for each and the property was mutated immediately and we all became joint owner of the property.Now, my mother has filed for a partition suit for the HUF assets. My questions are as follows- 1. What are the partition rights of a widow in the Mitakshara law? 2. Is the widow a coparcener or a member? 3. Can a widow file for a partition against the consent of the coparceners (here it is me and my sister)? 4. Can she bequeath her share to an outsider to the exclusion of me and my sister’s consent?
:
A Widow is a not a coparcener of her husband’s HUF. She is only a member of the HUF. Only a coparcener can ask for partition of an HUF and Since she is not a coparcener of the HUF she is not entitled to ask for a partition though she is entitled to get a share equal to that of her son as and when a partition takes place. She cannot file for partition of the HUF assets as she is not a coparcener of the HUF and does not have any rights in the asset at present as there is a probability of a partition not taking place during her life time and thus she not getting any share in the HUF assets. For the same reason she cannot bequeath anything belonging to HUF either to outsider or even to family members.
guest: Since daughters have equal rights as sons in HUF and are the coparcener, so the daughters` children, be it Male or female, are also the coparcener. Can they also ask for the partition of the HUF, though their share is only within the share of their mother? Further, on partition of HUF, are the signatures of the adult children of the daughters also required? Further if a daughter settles her share in the father HUF and relinquishes her further rights, can her children and her husband claim their share from that daughter.
:
There has to be a common male ancestor for becoming a coparcener. The coparcener status does not extend beyond daughters. But in case of a Son, it`s extends to his children as well may be grandson or granddaughter. If the daughter relinquishes her interest her children/husband cannot claim it. There has to be a common male ancestor for becoming a coparcener.
guest: A Karta of an HUF has decided to distribute Fixed deposits of HUF worth Rs. 50 Lacs between the 4 members of HUF @ Rs 12.5 lakhs each. 1. Are there any clubbing provisions that come into picture? 2. Is there any Gift Deed required to pay out this share of Rs. 12.5 lakhs each? Is there any limit to pay without executing Gift Deed? 3. If in case Gift Deed is required, then on which Stamp paper it is required to get executed? Does it need to get notarized? Karta does not want to dissolve this HUF. He just wants to distribute his Fixed deposit among its members excluding himself. Currently, HUF is doing service based business (Job works) & showing business income u/s 44AD which Karta wants to continue in Future. Apart from that, HUF has its own savings bank account. There are no other assets in the HUF. Can Karta distribute only FD of 50 lakhs in 4 members (Married Daughter, son in law, son of married daughter, daughter of married daughter who is also married) and continue doing business in HUF? If yes, how can this be done and what will be the formalities required?
:
Unless all the assets of the HUF are distributed among its members through a full partition, the income earned by the members of the HUF in respect of assets received on such partial partition shall continue to be taxed in the hands of an HUF. For distributing fixed deposits in my opinion no gift deed is required to be executed but the gifts have to be accepted by the recipient to make the gift transaction conclusive. The money to be given to the son-in-law, son of the daughter and daughter of a daughter will be treated as gift in their hands as they are not member of your HUF and since the amount is likely to be more than 50,000/- in each case the same shall be taxed in their hands. The money given to daughter will not be treated as gift as this would be treated as partial partition of the HUF and not recognized by the tax laws so income accruing to your daughter will be clubbed with your income. Under the Hindu law a there are certain restrictions on Karta to gift away asset of the HUF. However with the consent of all the coparcener you can make gift of HUF assets.
guest: My father is Karta of HUF. We have a bank account in Dena Bank. We had asked for a nomination but they are not taking any nomination in the HUF bank account. We also have a demat account with sharekhan Ltd. They also have refused nomination. Can you guide me how to get a nomination in HUF a/c Bank as well as D mat a/c (shares).
:
Yes, the bank and the depository both are right. Since an HUF is not a living person and continues to remain in existence even after death of its Karta. So no nomination is allowed in case of bank account and demat account of an HUF.
guest: I am part of an HUF of my Father, but I am not the Karta in that HUF. I wanted to know whether I can apply for a new HUF PAN for my HUF with my wife and my daughter as members and me as Karta and also continue with my father`s HUF?
:
As pre the Hindu laws an HUF can consist of four generations. Self, father, grandfather and great grand father. Moreover, a person can be a member of more than one HUF. So while being a member of the HUF of your father, you can have your own HUF also consisting of yourself, your wife and your children including a girl child. Since more than one coparcener are necessary for constituting an HUF and since daughter are also treated as coparcener after the amendment of Hindu Succession Act in 2015 So your family consisting of your wife and the daughter will constitute an HUF while all of them continuing to be members/coparceners of the bigger HUF.
guest: I am a Karta of my HUF which was created when my son took birth in 1991. My Son got married in 2018 & is living separately with his wife in Baroda. I have one married daughter living separately with her husband. My wife is living with me. Now I want to expel my son from the HUF and I do not want to give him anything from HUF. What should I do, especially the dissolution of HUF & not giving any money out of HUF.
:
As per Hindu Laws your son is a coparcener of the HUF and has the right to claim partition of the HUF property to get his share in the HUF property. So you cannot disentitle him from his shares of the HUF assets by any means. Please note that he can not claim any shares in your self acquired property as a matter of right. Your son and married daughter both are coparceners as per the Hindu laws and thus are entitled to ask for partition of the HUF property. Even both are entitled to bequeath their share in the HUF property under a will. Even in case they do not leave a will, their share will devolve on their respective heirs.
guest: In my HUF account I have shares of Market value of Rs.25 lakhs, 2 lakhs in bank account and 10 lakhs as advances in a firm. I have 2 married sons and 1 married daughter. My question is regarding, after my demise, how can the shares get transferred to My son`s account, and what about the other assets. Or will it be better if I dissolve my HUF now itself and distribute all the assets among my sons.
:
HUF is a distinct legal entity and can own property in its name. Thus the property in HUF does not belong to you absolutely and belongs to all the members of the HUF collectively. Prior to amendment of Hindu succession Act in 2005 the daughter were not treated as coparcener. However with the amendment of Section 6 of Hindu Succession Act, the daughters now have equal rights in the HUF property as that of a son. So in case you want to distribute the property of the HUF, your married daughter will have equal right as that of your sons. She is entitled to equal shares in the HUF property if it is partitioned. However she can forgo her right in the HUF property. The share which one gets on partition of the HUF should be equal, however with the consent of all the coparcener the distribution can be unequal or even some of the coparceners can forgo their claim in the property. The law to succession to HUF property has also been changed in 2005. Earlier the HUF property would devolve by survivorship but now the share of individual coparcener will pass to the legal heirs of the deceased. After your death, your shares in the HUF property will go to your legal heirs as per order prescribed in Schedule to of the Hindu Succession Act. You can decide to bequeath the property by will but can not gift away your shares in the property while you are alive. The remaining property shall continue to remain as property of the HUF. Your HUF can continue even after your death and your elder son can become Karta of the HUF. So as explained the different scenario as to how the HUF property would devolve on the death of a coparcener. You can decide which course of actions suits you. If you want to partition the property of the HUF, you will have to make a full partition and get an order from the income tax officer for such partition. Partial partition are not recognised under the income tax laws. The assets received on partition is not treated as income and is exempt under Section 10 of the Act.
