Can a grandmother start a non ancestral joint family business with her 2 year old nieces

Can a grandmother start a non ancestral joint family business with her 2 year old nieces

My Sisters claim that my parents properties were purchased from the funds of a Joint family business run by their grandmother and them when they were 2 year old ? Can an adult initially run/carry on a non ancestral business with two minors only? They further went on to claim that this business took over another business viz. an existing partnership firm with other relatives like cousins . They are trying to make a fake case of Joint hindu family to stake a claim on parents properties. They further claimed that father and mother had no independent source of income and were not income tax assesses and that Father was ostensibly Karta of the joint family business. Actually my father earned from 1945 and mother from 1955 and they purchased a property jointly and two others were purchased by my mothers from her self acquired income. Kindly help us in unrevealing this fraudulent case. thanks.

Asked 4 years ago in Income Tax

Between the years in 1955 and 1961 how can one show in the assessment order that spouses or minors income was clubbed with the individual: Any particular section i should be looks for? Can Minors file income tax returns and have income tax numbers in their own names between 1953 and 1972 legally or are they just fake claims? Thanks

Asked 4 years ago

My mother had 50% equity in a company and my father was the managing director. Could my mothers income be clubbed to his in 1955-1959?

Asked 4 years ago

Therea are many factors to consider

- Firstly what is the actual source of consideration used to purchase the parental properties. You can get the copy of registry from sub-registrar office. Minor can have separate PAN under the name of guardian. ITR of minor is filed by the guardian if minor had independent income earned thru his skills otherwise minor income is clubbed with parents.

- Minors can not run the business on their own as they do not have the authority to contract. From the question it is not clear whether parental properties are part of company or HUF. In case of HUF, you are a coparcner and have rights in the family properties.Also same properties should be reflected in the balance sheet of HUF.

I think matter should be discussed personally as more information is required. Please take phone consultation for detailed discussion.

Vivek Kumar Arora

CA, Delhi

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Properties are in parents name. There was never an huf or company . Two of the properties are actually self acquired and individually owned and one is jointly bought by both the parents. They have raised a case trying to prove otherwise.I appreciate your answer. Before amendment made in 1975 clubbing of minors income was only possible when parent was partner in partnerships. Am I right?

Asked 4 years ago

Dear Sir,

Hope you are doing well !!

We may assist you in entire procedure.

It is advisable to take a phone consultation for detailed discussion.