She could not reside in the family home unless she was single or divorced, and could. A hindu undivided family huf is a special feature of hindu society, which today consists ofa common ancestor and all ofthat common ancestors lineal descendants together with their spouses and unmarried children. In an undivided family, the ancestral property hasnt been partitioned among the sons and daughters. The hindu succession act, 1956 included only the male members as coparceners. The term hindu undivided family has not been defined in the income tax act. After the hindu adoptions and maintenance act, 1956, as well as the hindu succession act, 1956, it has been understood that widows have absolute rights on the husbands property and it cannot be stripped by remarriage or adoption. It is a presumption that ordinarily senior most male member is the karta and karta is always a member in the family no. Section 62 when is huf said to be a resident in india. Mar 24, 2016 in an undivided family, the ancestral property hasnt been partitioned among the sons and daughters. Assessment and taxability of hindu undivided family huf. Huf is a family with husband, wife and children and childrens spouses if any living together. The institution of joint hindu family is very ancient. Nowhere else in the world is this a legal form of business entity. Sep 27, 2017 after the hindu adoptions and maintenance act, 1956, as well as the hindu succession act, 1956, it has been understood that widows have absolute rights on the husbands property and it cannot be stripped by remarriage or adoption.
Huf is purely a creature of law and cannot be created by an act of parties except in. By definition, huf consists of all individuals who are lineally descended from a common ancestor and also comprises of unmarried daughters. The root of this decision lies in the amendment passed to the hindu succession act, 1956, in 2005. A partnership firm is governed by the provisions of the indian partnership act, 1932. What is huf account hufhindu undivided family account. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. Well, any person born into the family boy or girl up to the next coming three. 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. There is no rule of hindu law that the managing member of an undivided family should be an adult.
Hindu undivided family do business under the control of the head of the. An act to amend and codify the law relating to marriage among hindus. Under the hindu law the wife of the coparcener is certainly a member of the family. An aliened of coparceners undivided interest files a suit. The position of the karta of the hindu common family has its roots in the patriarch of the old family units.
Huf includes those persons who acquired by birth an interest in joint family property. In december 2015, the delhi high court gave a decision, stating that a daughter can be the karta of an huf hindu undivided family. It is obvious that a non hindu family cannot get this status. Who is a hindu huf all persons lineally descended from a common ancestor and joint in property, food and worship huf is not a juristic person in law sources of hindu law. One of such rules is individual and separate pan for huf, using which the member can file their returns.
Huf is not formed by a contract but by the status of a family i. Jun 03, 2017 the institution of joint hindu family is very ancient. Residential status of huf hindu undivided family under the income tax act. As stated earlier, huf is purely a creature of law and cannot be created by an act of parties except in case of adoption and reunion.
L i this act may be called the hindu succession act, 1956. It is a specific form of business organisation found only in india. The hindu succession act is applicable to hindus, jains, sikhs and buddhists. Role of karta in hindu undivided family huf by sumit mishra download pdf the author, sumit mishra is a 2nd year student of allahabad university. The business of joint hindu family is controlled under the hindu law instead of partnership act. It does not have any separate and distinct legal entity from that of its members. The term hindu undivided family has not been defined under the incometax act or wealthtax act. Hindu undivided family huf act advantages, disadvantages. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. Hindu undivided family huf is treated as separate entity for the purposes of assessment under the incometax act and wealthtax act. Prior to the amendments to the 1956 hindu succession act in 2005, only sons could be oct 2010 ilegalera. The incometax act provides for a special status to a hindu undivided family and it is assessed to. Apr 20, 2017 the term hindu undivided family has not been defined under the income tax act. Huf is a separate entity for the purpose of assessment under the act.
The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Assessment in the status of a hindu undivided family can be made only when there are two or more members of the. Apex court ruled that a conjoint reading of sections 4, 8 and 19 of the hindu succession act, 1956, after joint family property has been distributed in accordance with section 8 on principles of intestacy, the joint family property ceases to be joint family property in the hands of the various persons who have succeeded to it as they hold the. Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor. So, a parsi, muslim or christian cannot create a huf.
It 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. Hindu undivided family huf is treated as a person under section 231 of the incometax act, 1961 herein after referred to as the act. Smt champa kumari singhi 83 itr 720 sc buddhists, jains or sikhs by religion are hindus any child, legitimate or illegitimate, both of whose parents are hindusby religion. The term hindu undivided family has not been defined under the income tax act. Hindu undivided family huf is treated as a person under section 231 of the incometax act, 1961. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties.
An huf, or a hindu undivided family, is a separate tax entity in addition to individual persons who are members of such a family. It has evolved from the ancient patriarchal family which can be described as the earliest unit of human society. Partition of property in hindu undivided family property. Previously, the property of a deceased husband was could be moved ahead within the huf. The concept of huf under hindu law as well as incometax act, 1961 is the same. Karta means manager of joint family and joint family properties. A family consists of all persons lineally descended from a common ancestor and include their wives and unmarried daughters. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. Dose huf include the wives and daughters of the abovesaid persons. Formation to partition legal and tax implications by ca. While all other corporate bodies recognized in corporate and individual income tax. Whatever be the school of hindu law by which a person is governed, the basic concept of a hindu undivided family in the sense of who can be its members is just the same. Partial and full partition of hindu undivided family huf taxguru. There are certain rules and regulations to be followed by huf.
In this lesson let us find out more about these types of business organisations. The position of a minor as the karta was also clarified in mullas hindu law. Under hindu law, an huf is a family which consists of all persons lineally descended from a common. Section 231 of the income tax act, 1961, treats a hindu undivided family as an entity distinct and different from an individual. A hindu undivided family huf, as its name suggests, is a joint family which is seen as a separate entity from that of the individual members in the huf. The hindu marriage act, 1955 act 25 of 195518th may, 1955 an act to amend and codify the law relating to marriage among hindus. Hindu undivided family huf is treated as a person under section 231.
A hindu undivided family is defined as consisting of a common ancestor and all his lineal male descendants together with their wives and unmarried daughters. Joint hindu family firm is created by the operation of law. Huf is also a separate legal entity under the income and wealth tax act and is liable to pay tax. The entire law relating to hindu undivided family huf. Reopening of partition in a hindu joint family ipleaders. The hindu undivided family in independent indias corporate. If he is sui juris, he can also act through his natural guardian, his mother.
For the purpose of the applicability of section 642 of the act, the expression cannot be given a restricted meaning to include only those hindu undivided families which comprises of the individual, his wife and minor child of which. Jan 28, 2015 a family consisting of a single individual is a contradiction in terms. There is no rule of hindu law that the managing member. If you are hindu, buddhist, jain or sikh, you can have an huf as a separate tax entity. Indian citizens with hindu ethnicity can come together and save a good amount of taxes by creating a huf. The property owned by this family will be through lineal ascendants or any ancestors.
Hindu succession act before the 2005 amendment made provision for a hindu undivided family to ensure that property remains with the male line of descent. The word hindu preceding the words undivided family signifies that undivided family should be of those to whom hindu law applies cwt v. The exclussion has been because the term hindu undivided family has already been defined in the hindu law and the. Hindu marriage act, 1955 ii hindu succession act, 1956 iii hindu minority and guardianship act, 1956. Assessment in the status of a hindu undivided family can be made only when there are two or more members of the hindu undivided family. Residential status of huf hindu undivided family under. A huf is said to be resident in india in any previous year in every case except where during that year the control and management of its affairs is situated wholly outside india.
As per the hindu succession act, all people who born in the family have the right to the huf property. Another form of business which is owned by the members of a joint hindu family and in which the family possesses some inherited property. Hindu undivided family is used in the act with reference to all school of hindu law mentioned above. It is obvious that a nonhindu family cannot get this status. Link to download this article in pdf format is at the bottom. 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. Hindu undivided family huf is not defined under the income tax act but is covered under the hindu law. Under hindu succession act, 1956 us 6 widow, daughter, mother, predeceased sons daughter and his widow, predeceased sons predeceased sons widow, daughters daughter are entitled to their respective shares as per the rules laid down. The hindu undivided family in independent indias capital.
Hindu undivided family huf under income tax act of india. A family consisting of a single individual is a contradiction in terms. The joint hindu family business is a distinct form of organisation peculiar to india. Hindu undivided family the expression hindu undivided family has not defined under the income tax act or in any other statute. Concepts of ancestral property indian national bar. Application of act 1 this act applies a to any person, who is a hindu by religion in any of its forms or developments including a virashaiva, a lingayat or a follower of the brahmo, prarthana or arya samaj. When we dissect essentials are 1 one should be hindu, jains, sikhs and buddhists are considered as hindus but not muslims or christians. According to it act, tax rebates and deductions can be availed under sections 80c, 88 and 80l for huf account.