• The concept of a Hindu Undivided Family (HUF) is primarily governed by Hindu law in India. The Hindu Undivided Family is recognized under Hindu Succession Act, 1956, which was enacted to address issues related to inheritance and succession among Hindus. Here are key points related to the Hindu Undivided Family under the Hindu Succession Act, 1956:

    1. Definition of HUF:

    • Section 2(31) of the Income Tax Act, 1961, defines HUF as a family that consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. The concept is also recognized under the Hindu Succession Act.

    2. Formation of HUF:

    • HUF is formed automatically when a Hindu family exists. It doesn’t require any formal agreement for its creation. The family members, including the head (Karta) and coparceners, collectively form the HUF.

    3. Karta:

    • The Karta is the head of the HUF and is usually the senior-most male member. The Karta manages the family’s affairs, represents the family in legal matters, and plays a central role in decision-making.

    4. Coparceners:

    • Coparceners are the members of the HUF who have a right to the ancestral property by birth. Traditionally, only male descendants were considered coparceners, but amendments to the Hindu Succession Act in 2005 granted daughters equal rights as coparceners.

    5. Ancestral Property:

    • Ancestral property is a key component of HUF. It includes property inherited up to four generations of male lineage. Coparceners have a share in the ancestral property.

    6. Succession and Inheritance:

    • The Hindu Succession Act governs the succession and inheritance within HUFs. The Act outlines the rules for intestate succession (when there is no will) and the distribution of property among family members.

    7. Partition:

    • Coparceners have the right to seek a partition of the HUF property, including the ancestral property. Partition results in the division of property among the coparceners, and each member becomes entitled to a share.

    8. Income Tax Implications:

    • The Income Tax Act recognizes HUF as a separate tax entity. HUFs are eligible for separate tax benefits, and they file income tax returns independently.

    9. Amendments:

    • The Hindu Succession (Amendment) Act, 2005, brought significant changes to the Hindu Succession Act. It granted daughters equal rights as coparceners in ancestral property.


    The Hindu Undivided Family is an integral part of Hindu law, and its provisions are relevant in matters of succession, inheritance, and taxation. The legal and tax implications of HUFs can be complex, and individuals considering or operating an HUF should seek advice from legal and financial professionals to navigate the specific laws and regulations applicable to their circumstances.