1. Ancestral property is owned by the entire family, not an individual.
2. While tax benefits can be availed if a Hindu Undivided Family (HUF) is formed to include this property, there is
a restriction on the transfer of property.
3. Ancestral property that is jointly held by the HUF cannot be gifted unless you become the sole
surviving member, as it is jointly held by the family, and therefore, no
individual member has an absolute right over it.
4. Hence, he cannot
gift it to a third person, unless he is the sole surviving member of the HUF.
5. While this ruling has
significance for HUFs, other religions do not recognize the concept
of joint property.