# Hindu Undivided Family (HUF)

## Treatment under Income Tax Act

HUF is treated as a separate entity for assessment.
Definition of 'Person' under Sec 2(31) includes HUF.
Levy of tax is on 'every Person' → therefore tax is payable by HUF separately from its members.

## Composition of HUF

An HUF consists of all males lineally descended from a common ancestor and includes their wives and daughters.
Some members are called Coparceners.
Coparceners are related to each other and to the Karta (Head of family).

## Coparceners

HUF may have many members, but only members within four degrees including the Karta are coparceners.
Coparceners acquire right in HUF property by BIRTH.
Both sons and daughters can be coparceners (post-2005 amendment to Hindu Succession Act).
However, the wife / daughter-in-law of a coparcener is NOT eligible for coparcenary rights.

## Other HUFs

Under the Income-tax Act, Jain Undivided Families and Sikh Undivided Families are also assessed as HUFs.

Worked example

### Example 1

Example 1: Mr. K (Karta), his wife Mrs. K, son S and daughter D form an HUF. S and D are coparceners; Mrs. K is a member but not a coparcener.

### Example 2

Example 2: Mr. K's son S marries Mrs. S. Mrs. S becomes a member of the HUF but does NOT acquire coparcenary rights.

### Example 3

Example 3: A Jain family that pools ancestral property is treated as an HUF for tax purposes.

⚠️ Common exam mistakes

Treating a wife / daughter-in-law as a coparcener — she is a member, not a coparcener.
Excluding daughters from coparcenership — post-2005, daughters ARE coparceners equally.
Forgetting that Jain & Sikh undivided families are also assessed as HUF.
Combining HUF income with Karta's individual income — they are SEPARATE assessees.

Reference: Section 2(31)(ii)

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HUF (Hindu Undivided Family)

Worked example