Srinivasanʼs Hindu undivided families co-parceners and income-tax law. by M. N. Srinivasan Download PDF EPUB FB2
Under Hindu law, partition of HUF can be of two types: Total and partial partition. Total Partition: It is a type of partition in which entire family property is divided among the co-parceners. Introduction. 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 that gave it the status of a separate and distinct tax by: 2. HUFs â€“ Hindu Undivided Families are the form of organizations has separate legal entity for the purpose of tax assessment. The HUFs have been defined under the Hindu law as a family, which consists of male lineally descended from a common ancestor and included their wives and unmarried daughters.
As per section 10(2) of the Income-tax Act, any sum received by an individual from Hindu Undivided Family of which he is member is exempt from tax but Amount received not as a member of Joint Family but in pursuance of some statutory provision, etc. would not be exempted in this clause and Member of joint family living apart from the other.
Property taken on Partition of a Hindu undivided family does not amount to property inherited by members. P.N. Krishna Iyer vs Commissioner Of Income-Tax, on 3 September, Equivalent citations: AIR SC73 ITR SC, 1 SCR Author: Shah.
Bench: A G Shah, V Ramaswami. JUDGMENT Shah J. The concept of Hindu Undivided Family may cease to exist if the proposals of a recently released consultation paper on Reform of Family Law by the law commission are accepted.
Inthe Ministry of Law and Justice made a reference to the Law Commission of India to examine matters in relation to a uniform civil code. The “Hindu undivided family” is treated as the separate entity of the purpose of assessment of tax of the joint family under Income Tax Act, and Wealth-tax Act, “Hindu undivided family” will enjoy all exemptions and deductions; including the basic exemption from income-tax.
The relation of Hindu undivided family does not arise from a contract but arises from its status. Though Jain and Sikh families are not governed by the Hindu law, such families are treated as Hindu undivided families for the purpose of the purpose of the Income-tax Act.
Head of the family is known as KARTA. The Karta is the oldest male family. Commissioner of Wealth Tax, the Supreme Court held that the expression ‘Hindu undivided family’ in the wealth Tax Act used in the sense in which a Hindu joint family is understood in the personal law of Hindus and a joint family may consist of a single male member and his wife and daughters and there is nothing in the scheme of the Wealth.
mint-india-wire Hindu undivided family coparceners HUF joint family. income tax It is often said that tax is a fine for doing well. Cliched it may sound, but most taxpayers go to great lengths to. Hindu Undivided Family (HUF) under Income Tax Act of India.
Hindu Undivided Family (HUF) is treated as separate entity for the purposes of assessment under the Income-tax Act and Wealth-tax Act. The term “Hindu Undivided Family” has not been defined under the Income-Tax Act or Wealth-tax Act.
It has not been defined in any other law also. The joint and undivided family is the normal feature of Hindu society. There is a presumption in Hindu law that a family is living in a state 8of union, unless the contrary is proved. The presumption is stronger in case of nearer relationship but gets weaker in case of remoter relationship.9 The general principal is that every Hindu family.
of Hindu personal law. After defining the HUF through the codification of personal laws inthe state then took the next step to perpetuate the ‘Hindu Undivided - Family’ (HUF) as an entity recognised by Section 2 of the Income Tax Act by preserving its status in continuation from the colonial income tax laws of and File Size: KB.
Hindu undivided family[huf] (3) 1. INI MOHANTY 2. It is a specific form of business organisation found only in India.
HUF is a separate and distinct tax entity that i.e. the income of a HUF can be assessed in the hands of HUF only and not in the hands of any of its members. Hindu Undivided Family do business under the control of the head of the family is known as ‘karta. However, all the members hold equal ownership over the property of an ancestor and they are called as co-parceners.
Meaning of Joint Hindu Family Business. It refers to a form of business organization which is owned and carried on jointly by the members of the Hindu Undivided Family (HUF). It is also known as Hindu Undivided Family Business.
represent the family for Income Tax Assessment Sushiladevi rampuriya v. ITO  38 ITR (cal.) Q Mrs. X along with two daughter after her husband's death, wants to form a HUF.
What are the views. Ans: Not possible. The concept of female forming a joint hindu family agreement appears to be Contrary to hindu Size: 20KB.
The term of HUF is not defined in income tax law; it is defined under the Hindu Law as a family. The family continues to exist even after the death of the common ancestor and the next eldest male member becomes the head of the family or the “Karta”.
In financial terms, we can call him ‘manager of the family’. The term ‘Hindu undivided family’ is defined under the Hindu law. The term refers to a family of all persons lineally descended from common ancestors, including wives and unmarried daughters, if any, living together and owning property through ancestors.
The expression “Hindu Undivided Family” has not defined under the Income Tax Act or in any other statute. Hindu Undivided Family (“HUF”) which is same as joint Hindu family is a body consisting of persons lineally descendant from a common ancestor, including their wives and unmarried daughters, who are staying together jointly; joint in food, estate and worship.
The Income Tax law will recognize its demise (for want of a better word,since a divided Hindu family can be reunited again),only when the HUF is stripped naked of each and every layer of the clothing of property—-tangible or intangible, movable or immovable--it had.
It has to get back into its birthday suit again to be truly partitioned. HUF or Hindu Undivided Family is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters.
What is HUF The legal business which is carried by them known as joint Hindu family. In Decemberthe Delhi High Court gave a decision, stating that a daughter can be the Karta of an HUF (Hindu Undivided Family). The root of this decision lies in the amendment passed to the Hindu Succession Act,in The Hindu Succession Act.
Hindu Undivided Family carrying on a family business are not partners in the sense that their relationship inter it is not governed by the Partnership Act,but the Hindu Law while deciding joint ownership in the family only substantial resemblance between the two forms of association seems to be that in each case the members carry on business together.
A joint family or undivided family is an extended family arrangement prevalent throughout the Indian subcontinent, particularly in India, consisting of many generations living in the same household, all bound by the common relationship.
Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31) of the Income-tax Act, (herein after referred to as ‘the Act’).
The karta can take decisions as the “head of the family” to sell/rent/buy property and can also decide how to spend the income generated from the HUF property. In a judgment delivered last month, the Delhi High Court held that the eldest daughter of the family can be the ‘karta’ of the Hindu Undivided Family property.
If Hindu undivided family is to be considered as an association of persons, there was no point in making separate provision for the assessment of Hindu undivided family. This conclusion is strengthened by Section A of the Indian Income Tax Act, which provides for the assessment of Hindu undivided family after its partition.
The Supreme Court has held that all assets in a Hindu Undivided Family (HUF) would be presumed to be joint property belonging to all its members and a family member has to produce evidence to stake claim over any part even if it is 'self-acquired'.A bench of Justices Abhay Manohar.
PARTITION OF HINDU UNDIVIDED FAMILY PROPERTY. The Hindu Law defines a Hindu Undivided Family (HUF) as a family which consists of male lineage decedents from a common ancestor and also includes their wives and unmarried daughters. HUF is also a separate legal entity under the Income and Wealth Tax Act and is liable to pay tax.
The Tenacity of the Hindu Undivided Family. Joint Hindu Family Business is a distinct type of organisation which is unique to India. Even within India its existence is restricted to only certain parts of the country.
Last week we began by examining the basic concept of Hindu Undivided Family (HUF). The article dwelt on the backdrop behind which the concept. hindu undivided family Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times.
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