Formation of HUF On Intestate Death of a Hindu Father


On the death of a Hindu father who dies intestate (without making a wilt) leaving ancestral movable and immovable assets; the ancestral assets so left are thereupon inherited by the heirs of the Hindu father and the person so inheriting the ancestral assets can with the help of the assets so received form a HUF by treating the assets so received as the Corpus of the HUF. Any ancestral property received on death or partition would be HUF property in the hands of the male recipient. Once properties are received as Corpus of the HUF, the best way would be to affirm the above facts on an affidavit so that the intention of the person to this effect is confirmed.

In the case of CIT vs Nandlal Agarwal (1966) 59 ITR 758, the Apex court was confronted with a situation where a person belonging to Mitakshara school of Hindu Law died intestate leaving his widow and two minors. After the death of the person, a business was left behind and two Guardians were appointed. In the meantime, the widow also died and two minors were held to constitute a joint Hindu family and the income from the business left behind was held to be joint family income assessable as Income from business belonging to family.

A draft of such an affidavit is as follows:



I, CDR, son of Late DDR residing at Chowringhee Road, Kolkata-700 071 do hereby so’emnly affirm and declare as follows: -

1. That my father .DDR died instate on 12th August, 2011 leaving behind certain properties as listed in the annexure.

2. That out of the said properties, the property at Chowringhee Road, Kolkata-700 071 was acquired by him by way of inheritance from my grandfather and was ancestral property.

3. That upon death of my father, I along with my wife, my sister, my son and my mother have become entitled to the said property at Chowringhee Road as per the provisions of the Hindu Succession Act, 1956.

4. That the said ancestral property has devolved on the HUF consisting of myself, my mother, wife, sister, son etc.

5. That my wife, my son, my mother and my sister have signed this affidavit as a witness to the facts as aforesaid and as an acceptance of the said facts.

6. That the Statements made hereinabove are true to the best of my knowledge and belief and nothing is false.

Declared at Kolkata
This 21/04/2014
Witness and confirmatories
3.                                                                                                                                                     (CDR)



 In this regard following precautions must be taken:

1.         The HUF must be capable of being formed i.e., it must consist of more than one member.

2.         The declaration should be properly worded to indicate that it is proposed to inherit the property to HUF.

3.         The Stamp paper should be of requisite value.

4.         The Stamp paper should not be stale.

5.         The name in which stamp paper is purchased is proper i.e., either it is in the name of the HUF, or in the name of the declarant or if is in the name of an Advocate, that Advocate must sign the declaration as a Witness.


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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