Whether a husband and wife can form an HUF without any issue?
Let us discuss it in short to know about the solution. This is one of the most common questions. There are a lot many individual taxpayers who want to create a HUF with a spouse by taking the gift from the family members.
Hindu Undivided Family (HUF) is just a normal prevailing condition in the Hindu Society.
It must be noted that HUF is a creature of law and cannot be created by act of parties or by executing a contract deed.
Hindu Undivided Family is different from a Hindu coparcenary.
Hindu coparcenary is a special feature of the Mitakshara School of Hindu Law. It consists exclusively of male members, much narrower than Hindu Undivided Family. A coparcenary includes only those who acquire by birth an interest in the joint or coparcenary property. No coparcenary can commence without a common male ancestor.
It may be recalled that the Hindu Succession Act, 1956 has been amended w.e.f. 09.09.2005 with a view to give daughters on birth equal rights as a son on his birth.
Resultantly, the daughter has the right to be a coparcener and also a right to claim partition or vest her individual property in the HUF. These are important rights hitherto denied to the daughter.
To create HUF, at least two coparceners are required either son or daughter. Therefore only husband and wife cannot create an HUF, unless the property has been received by a coparcener on partition or otherwise. However, there is no impediment to starting a new HUF by gift from family members.
In short, even a husband and wife can create HUF if (a) they have received the property on partition or (b) they have received a gift for HUF.