HUF - Investment Options


As we have seen above, HUF is entitled to hold movable as well as immovable properties of all kinds and this being so, the investment avenues for HUFs are also very wide. Investments can be made in the name of the HUF or its Karta or its members.

The main investment options available to HUF are as follows:


1. Immovable Assets


Immovable properties of all kinds like land, building, and any other types of immovable property which is attached to earth.

All such immovable assets are capable of being registered in the name of the HUF.


2. Movable assets

HUF is also entitled to own and hold all kind of movable assets such as:

1.         Shares and debentures
2.         NSCs
3.         Deep discount bonds
4.         Investment in Units of Mutual funds
5.         Zero coupon bonds
6.         Indira Vikas Patras
7.         Kisan Vikas Patras
8.         Cash
9.         Stocks and debtors forming part of business assets.
10.       Life Insurance policies(in the name of Karta and/or member)


The above list is not exhaustive and in present age of globalization, more and more avenues are opening up on a daily basis.

There is no bar on HUF in holding any kind of Movable and immovable assets. It has to be kept in mind that sometimes the investment may be held in the name of the Karta though the beneficial interest lies with the HUF, since the funds for such investment are given by HUF. In cases like this, it is always better to make a statementto this effect in the Statement. of affairs of the HUF which is filed with the Income-tax department. Burden to prove that property standing in the individual name of any person is not his absolute property but property of the HUF would be on the HUF because it is well settled that apparent is real unless otherwise proved. Hence documentary evidence and proof deserve to be maintained.


HUF -  Capital Gain Account
HUF -  Deduction from HUF Business Income
Income Derived From Funds Of HUF -Whether Individual Income Or Family Income
Gift by HUF to its Member
Gift To Minor Daughters Out Of HUF Property Prior To Marriage
Gift of HUF Property to Stranger or to any Person who is a Alien to HUF
Clubbing Provisions In Case Of Gifts Received By HUF
Applicability of Clubbing Provisions in case Karta of a HUF is a Partner in a Firm
Gifts received by HUF from Aliens / Strangers
HUF - Investment Options
Concept of Multiple HUF’s
Whether a Single Member can Constitute a HUF ?
Whether any Limit is placed on Number of Members of a HUF ?
Whether HUF- Can Be Constituted with only Female Members ?
Drawings / Expenses of HUF
Whether HUF can be a Shareholder / Subscriber to the MOA ( Memorandum Of Association)  of a Company
Whether HUF can be a Member of a Cooperative Society ?
Whether HUF can be a Partner ?
Can KARTA of a HUF enter into Partnership with another Member of HUF ?
Can There Be A Partnership Between Two HUFs?
Effect Of Death Of Karta In Case Of Partnership Firm
Whether HUF Can Be A Proprietor ?
Whether HUF Can Be A Trustee / Settler ?
HUF - Aliyasantana Law
HUF - Marumakkattayam Law
Power of KARTA in relation to HUF
Managing Members in relation to HUF
Whether a Female can become a Karta ?
Tax Planning TIPS for HUF
HUF - Meaning Of Important Term- “Ancestral”
HUF - Meaning Of Important Term- “Stridhan”
HUF - Meaning Of Important Term- “Mitakshara”
HUF - Meaning Of Important Term- “ Dayabhaga”
Meaning of the term ‘Coparcener’ of HUF
Power of ‘Coparcener’ of HUF
Difference between a ‘Coparcener’ and a ‘Member’
Whether Husband / Wife Can Constitute A HUF ?
‘Maintenance of Accounts’ by HUF
‘Audit of Accounts’ by HUF
Applicability Of The ‘Accounting Standards’ On HUF
Whether Merger Of Two HUF is Possible ?
Residential Status of the HUF under I.T. Act.1956
‘Coparcener Property’ under HUF
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