Can I show my rental income in HUF account
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The following article was first published in the Mint newspaper on 16th May, 2022. The same was written by our Private Client team at Cyril Amarchand Mangaldas, who frequently publish their comments and opinions in the Mint. The online version of the article can be found here.

I am the karta of a Hindu Undivided Family (HUF) firm. My coparceners are my wife and son. I am retired and only have rental income from a house inherited from my mother through her probated will. 

Can I show my rental income in my HUF bank account? And, as and when I sell that house, can I show the sale proceeds in the HUF account? For this, do I need to transfer the  house to HUF? If yes, then what is the procedure? Isn’t the property automatically treated as HUF property, as I am also the karta of the HUF? 

What process is required to be followed in case the property is to be bequeathed after the demise of the testator which is as per the registered Will in Delhi after the mutation has been done in the municipal records. It needs to be further clarified whether the process of probate is also to be followed in Delhi or if a succession certificate is sufficient and who would issue the same?


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Succession Toolkit

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article, which was published by the Outlook Money on 1st April, 2022 and the online edition of the same can be found here.

Intestate succession planning laws in India are unfavourable for women. So, women must use the tools available and become the decision-makers in how their assets are transferred. The Covid pandemic has shown that life is fragile, and tragedy can strike any time. In the course of conversations with clients, we find that most women do not undertake succession planning, and even fewer understand the need for an estate plan. This is mainly due to lack of awareness, and because they usually tend to look to their husbands and/or other family members to deal with their assets. This needs to change, especially at a time when women are becoming wealth creators in their own right and are increasingly running large family businesses. Many women today are also inheriting valuable portions of the family business.

One can execute a Will just by signing it and having it attested by two witnesses. There is no requirement for having the Will mandatorily registered in India


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HUF
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the  following Q&A which was published by the Mint Newspaper on 20th February, 2022 and the online edition of the same can be found here.

My dad had invested in mutual funds in which my mother was a nominee. I have lost my parents and wish to transmit them in my name. My query is – whether these mutual funds can be transferred to ​​​a Hindu Undivided Family (HUF) that I have created to reduce tax liability?

—Name withheld on request


Continue Reading What is the right of an heir in the mutual fund holdings of a parent?

Karta
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the  following Q&A which was published by the Mint Newspaper on 23rd January, 2022 and the online edition of the same can be found here.

My mother is a widow. My father expired 10 years ago. We are two (major) sons and a married daughter. We brothers have created a HUF with an initial capital of 50,000 received as a gift in marriage. Can my mother create a HUF being a karta and we two sons as coparcener?

-Pinrani

Continue Reading Can my mother be the karta of the HUF?

HUF
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the  following Q&A which was published by the Mint Newspaper on 18th January, 2022 and the online edition of the same can be found here.

My father-in-law died of covid on 6 September 2020 and my mother-in-law died on 13 December 2020. My wife is their only daughter. I need some clarity on the following:

a. My father-in-law had some HUF (Hindu Undivided Family) bank accounts and mutual funds. How do my wife or I run the accounts or withdraw the money.

b. My father-in-law has some shares and bank accounts in which his brother or sister-in-law are the nominees. How do I claim those from them?

– Kapil R. Tulsan

Continue Reading How can I withdraw money from HUF accounts of in-laws?

Rights of 'members' of an HUF remain extremely limited
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the  following Q&A which was published by the Mint Newspaper on 14th September, 2021 and the online edition of the same can be found here.

What is the status of the wife of the grandson in a Hindu undivided family (HUF)?

—Shiv Kumar Jha


Continue Reading Rights of ‘members’ of an HUF remain extremely limited

Maiden name won't cause complications in property dealings
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions in an article in the  following Q&A which was published by the Mint Newspaper on 23rd June, 2021 and the online edition of the same can be found here.

I bought a house in my name in 2007 after marriage. At that time, I had my PAN card and bank accounts in my maiden name. So, the house was registered in my maiden name. Later, I changed the name in my PAN card and bank accounts when I added my husband’s surname to my maiden name. Now, the house is registered in my maiden name, while all my documents and IDs have my husband’s surname added to my name. Will this anomaly create a complication later if I plan to sell the house or plan to bequeath it? What do I need to do to avoid this complication in future?

—Mrs Khare

Continue Reading Maiden name won’t cause complications in property dealings

Will executed by a Muslim does not mandatorily need a probate
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 02nd December, 2020 and the online edition of the same can be found here.

My maternal grandfather had inherited some property from his father. My mother passed away in 1997 and my grandfather in 2018 without any partition or will. My mother’s brother is denying that I have any share in the property. Do I have a legal share in it as the son of a predeceased daughter, as per the recent clarifications on the Hindu Succession Act?

Photo by Robert Eklund on Unsplash

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article which was published by Moneycontrol.com on 12th August, 2020 and the same can be found here.

The Indian judiciary continues to take progressive steps towards making succession law more women friendly. In the landmark case of Vineeta Sharma v. Rakesh Sharma (Judgment), a 3 judge Bench of the Supreme Court (SC), on August 11th, 2020, held that daughters would have equal coparcenary rights same as that of a son in a Hindu Undivided Family (HUF). The SC clarified two points:

    • Coparcenary rights are acquired by a daughter at birth; and


Continue Reading What is the impact, do wives benefit and other questions about SC ruling giving daughters equal rights over their father’s property answered

Eldest Female Coparcener HUF
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The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the  following Q&A which was published by the Mint Newspaper on 12th May, 2020 and the online edition of the same can be found here.

My father recently passed away. We had an Hindu Undivided Family (HUF). It comprises of my mother, my two brothers and one elder sister. My father was the karta. Can we make our mother or unmarried elder sister the karta? What will happen when the sister gets married?

—Raman Verma
Continue Reading Eldest female coparcener can be karta of a Hindu Undivided Family