By Dr. Anup P. Shah
Chartered Accountant
INTRODUCTION
Can the Karta of a HUF make a gift of joint family immovable properties? - a question that keeps cropping up time and again. The answer to this is not a simple yes or a no. It is possible but subject to the facts of each case. There have been several important Supreme Court verdicts on this issue that have dealt with different facets of this question. Let us analyse the position on this topic.
BACKGROUND OF A HUF AND ITS KARTA
As is trite, a HUF is a creature of law. Traditionally speaking, a HUF was a joint family belonging to a male ancestor, e.g., a grandfather, father, etc., and consisted of male coparceners and other members. Thus, the sons and grandsons of the person who was the first head of the HUF automatically became coparceners by virtue of being born in that family. A unique feature of a HUF is that the share of a member is fluctuating and ambulatory, which increases on the death of a member and reduces on the birth of a member. A coparcener is a person who acquires an interest in the joint family property by virtue of being born in the family. Earlier, only men could be coparceners. A wife and a person’s mother also could not become a coparcener in a HUF. However, from 2005, all daughters are at par with sons, and they would now become a coparcener in their father’s HUF by virtue of being born in that family. Impor
