Hindu undivided family

Social science has had a very limited engagement with the socio-legal entity of the Hindu Undivided Family (HUF). In corporate and personal law—the two spaces it inhabits—it has been largely regarded as separate and distinct entity from “modern” tax and corporate governance entities like individuals and body incorporates. It is often referred to as an archaic remnant associated with feudal structures of land and property holdings. Its implications on capital accumulation in the “modern” structures of corporate governance and tax structures have not been studied at all. This paper is an attempt to arrive at a comprehensive delineation of the role of the HUF in the corporate governance and taxation regime in independent India. 1 This paper is an overview of the Hindu Undivided Family (HUF)—a legal entity embedded in tax, corporate governance and state codification of Hindu personal law in India. The HUF found legal recognition in the late 19 th century, but it was the Income Tax Act under colonial rule in 1922 that gave it the status of a separate and distinct tax entity. The legal category of the HUF has existed in the tax code since then. This inclusion is based on a much longer history of recognition of customary law by the British colonial state in India. In the interpretation of the colonial state, the HUF represented a joint family that was held together by strong ties of kinship and entailed a variety of joint property relations among the members. There were blurred a...

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HUF Advantages And Disadvantages: The Hindu Undivided Family Act is a special sort of business character tracked down just in India. Assuming that you are a Hindu, you can save Taxes through the HUF act. Yet, there are a couple of rules to it, which you will know in this article alongside a portion of the benefits and detriments of the Hindu Undivided Family act. In India, there is the special idea of Hindu Undivided Family (HUF) which is involved by numerous families as an idea of district pooling of the family. Curiously, a HUF is considered to appear the second a man and lady wed one another. Notwithstanding, to be legitimately valid, the HUF should be enrolled under the rule that everyone must follow. For what reason are HUFs well known in India? The HUF will be treated as a different element so actually, you get an additional PAN card for the sake of the HUF. This empowers you to diminish your duty risk by dividing the livelihoods to an additional legal individual. Allow us to comprehend the idea of HUF and how to produce a pay in HUF. Allow us additionally to take a gander at HUF benefits and drawbacks also as how might HUF save charge for you. Students can also find more Advantages and Disadvantages articles on events, persons, sports, technology, and many more. What is HUF? Advantages And Disadvantages of HUF 2022 Hindu Undivided Family otherwise known as HUF is made by Hindu families in India. Buddhists, Jain, Sikhs can likewise frame a Hindu Undivided Family. In ...

Table of Contents • • • • • • • • • • • • • • • • • • • • Introduction India is a big country having people belonging to different religions and faiths. They are governed by different personal laws. The Hindus who are in majority are also governed by a different set of personal laws concerning family affairs, such as succession, marriage, and divorce. The moment a Hindu male gets married he is eligible to create a HUF. It is one gift that all Hindus get from by virtue of Hindu Law on marriage. It is not necessary to have children to create HUF. Forming a HUF is that simple but most people are unaware that a HUF structure is also an effective way of saving taxes. Under the Income Tax Act, 1961. Sikhs, Jains, and Buddhists can also create a HUF although they are not governed by the Hindu Laws. Hindu Undivided Family ‘HUF’ stands for Hindu Undivided Family or Hindu Joint Family. The name itself suggests that it would be a big family with many members. The HUF is actually a unique type of business entity, a separate legal entity as per the Income Tax Act, 1961 . The term ‘HUF’ in the Act is used in the sense that it is understood in the Hindu personal laws. Actually, HUF is not defined in the Income Tax Act, 1961 but it was included within the meaning of the term ‘person’ in Section 2(31) of the Act. It was excluded because the legislature wanted the meaning of HUF to be the same as what it is in the Hindu Law. According to Hindu Law, all the people in a HUF are li...

Table of Contents • • • • • • • • • • • • • • • • • • Coparceners meaning in Hindi The term has its equivalent in Hindi as समान उत्तराधिकारी. On the other hand, हमवारिस is the Urdu meaning of coparcener. When applied in the context of Hindu laws, coparcener has a more specific meaning than just a joint heir. Who is a coparcener under the Hindu law? Under the Hindu succession law, the term coparcener is used to denote a person, who assumes a legal right in his ancestral property, by birth in a Hindu Undivided Family (HUF). As per the Hindu Succession Act, 1956, any individual who is born in an HUF, becomes a coparcener by birth. Before we proceed, it would be crucial to understand what an HUF is. See also: What is an HUF? An Under the Mitakshara system, joint family property devolves by survivorship within the coparcenary. This means that the proportionate share of a coparcener decreases with every birth in the family and increases with every death in the family. Thus, a coparcener’s interest in the HUF property fluctuates by births and deaths in the family. Under the existing laws, the coparcenary rights of the fifth lineal descendant (the great-great-grandson) comes into effect only when the common ancestor dies. This way, a coparcenary consists of a person at the top of a line of descent, also known as propositus and his three lineal descendants – the son/s, the grandson/s and the great-grandson/s. Simply stated, a coparcenary has succession of up to four degrees of line...

The Entire Law Relating To Hindu Undivided Family (HUF) K. H. Kaji& Manish K. Kaji, Advocates The law relating to Hindu Undivided Families (HUFs) is a complicated branch of law, requiring specialist knowledge. The authors have mastered the subject, identified all the core issues, and explained them in a succinct manner 1. What is Hindu Undivided Family The expression “Hindu Undivided Family” has not defined under the Income Tax Act or in any other statute. When we dissect – essentials are (1) One should be Hindu, Jains, Sikhs and Buddhists are considered as Hindus but not Muslims or Christians; (ii) There should be a family i.e group of persons – more than one and (iii) They should be undivided i.e living jointly and having commonness amongst them. All these three essentials are cumulative. It is a body consisting of persons lineally descended from a common ancestor and include their wives and unmarried daughters, who are living together, joint in food, estate and, worship (not now necessary). The daughter, on her marriage, ceases to be a member of her father’s HUF and becomes a member of her husband’s HUF. However, after 1-9-2005, daughter married or unmarried, is a co-parcener like a son. 2. What is a Hindu Coparcenary? In what ways is it different from a HUF? A Hindu Coparcenary is a much narrower body within Hindu Undivided Family. Generally speaking, it is a body of individuals who acquires interest by birth in the joint family property. They are the son, grandson and...

Page Contents • • • • • • • What is HUF ? HUF stands for Hindu Undivided Family in which members of the family come together to form a HUF. Most Senior Person Member of the Family is known as krta who is responsible for all the affairs of HUF. A child automatically becomes the member of HUF at the time of Birth. Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31)​ of the Income-tax Act, 1961 (herein after referred to as ‘the Act’). HUF is a separate entity for the purpose of assessment under the Act. Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family. Jain and Sikh families even though are not governed by the Hindu Law, but they are treated as HUF under the Act. How HUF is formed? HUF is formed by creating a deed between the Members of the Family. The deed shall contain details of Members of family, nature of business & other relevant details of HUF. On the Basis of notarised deed, an application for PAN is filed in form 49A & on the basis of deed & PAN card a bank is open on the name of HUF. Evaluation of HUF: Under the Act, a HUF is acknowledged as a distinct assessable entity. If the two criteria below are met, its revenue may be determined: There needs to be a partnership. In this regard, it is important to note that once a joint family income is determ...

Read about the What is a HUF? HUF means Hindu Undivided Family. You can save taxes by creating a family unit and pooling in assets to form an HUF. HUF is taxed separately from its members. A Hindu family can come together and form a HUF. Buddhists, Jains, and Sikhs can also form an HUF. HUF has its own PAN and files tax returns independent of its members. Tax implications of forming a HUF How to save tax by forming an HUF? An HUF is taxed separately from its members. Therefore, it can claim deductions or exemptions allowed under the tax laws separately. For example, if you and your spouse along with your 2 children decide to create an HUF, all 4 of you as well as the HUF can claim a deduction for Section 80C. HUF is usually used by families as a means to build assets. Let’s understand in detail. How is HUF taxed? • HUF has its own PAN and files a separate tax return. A separate joint Hindu family business is created since it has an entity separate from its members. • Deductions under Section 80 and other exemptions can be claimed by the HUF in its income tax return. • HUF can take an insurance policy on the life of its members. • HUF can pay a salary to its members if they contribute to its functioning of the HUF. This salary expense can be deducted from the income of HUF. • Investments can be made from HUF’s income. Any returns from these investments are taxable in the hands of the HUF. • An HUF is taxed at the same rates as an individual. Let’s understand how an HUF is t...

Table of Contents • • • • • • • • • • • • • • • • • • • • • • • • What is an HUF? The abbreviation HUF stands for ‘Hindu Undivided Family’. An HUF, under the Hindu law, is a family consisting of lineal descendants from a common ancestor. It includes their wives and unmarried daughters. A Hindu Undivided Family cannot be created under a contract. It is created automatically in a Hindu family. Apart from Hindus, Jain, Sikh and Buddhist families can also create an HUF. What does an HUF consist of? An HUF can include three generations of a family and all its members. It consists of the karta, typically the male head of the family, along with the coparceners. Daughters continue to be coparceners in their father’s HUF even after marriage. They become a member of their husband’s HUF, too. Read our guides on Role of women in an HUF Daughters become the coparceners in an HUF since birth, just like sons. Consequently, they have the same rights and duties as the sons in an HUF. This means that they can demand their share of HUF properties. This change in daughter’s rights was brought about by an amendment in the Hindu Succession Act in 2005. Before that, daughters were members of an HUF, but not coparceners. It is important to note that women who join an HUF through matrimony are members and not coparceners. See also: Hindu Succession Act 2005 Can a woman be the Karta of an HUF? In a landmark judgement, the Delhi High Court in 2016 ruled that eldest members of an HUF can be its Karta...