HUF as distinct identity – Scenarios and Taxability

If somebody transfers his own assets for forming Hindu Undivided Family (HUF) after 31.12.1969, it is not acceptable and the income from such assets will be taxed in the hands of such individual transferring the assets that means the status is not treated as HUF.

However, in the following situations the status can be treated as HUF and accordingly separate assessment can take place –

If the income is generated from the ancestral assets (earlier belonging to the forefathers of the individual) or by investing the sale proceeds of such ancestral assets.

  • If the income is earned from the assets received by a married individual, on partition of a bigger HUF i.e., the HUF of father or grandfather.

If the income is received from investing the money received as gift collectively in favour of the members of a HUF from any relative or any person other than the Karta or any member of such HUF. is here to solve all your tax worries, be it relating to Tax Returns, Tax Support or Tax Planning.  Just contact us; we are here to relieve you from all your tax worries. provides most hassle free tax return filing/ online return filing experience. Once you have collected, your salary certificate and other documents, we request you to please log in to or you can also directly mail at to submit the details. Upon receiving the documents, we would contact you to file your return of income.

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