The word hindu connotes that essentially a huf can be formed only by the followers of the hindu religion and no other religious community like muslims,. What is an huf in the hindu society, there is a presumption that hindu families are living in a state of union unless the contrary is established. The concept of hindu undivided family, commonly known as huf, was derived from the ancient hindu laws an huf can be formed with the. A very effective and legal way advised by chartered accountants to save tax is huf ie hindu undivided family. U/s 2(31), person is defined to include a hindu undivided family (huf) section 3 of the wealth tax act, 1957 also indicates that wealth is.
Concept of huf the term 'hindu undivided family' has not been defined under the income tax act it is defined under the hindu law as a family that consists. A hindu undivided family (“huf”) is a special feature of hindu society, which today consists of a common ancestor and all of that common ancestor's lineal. A very effective and legal way advised by chartered accountants to save tax is huf ie hindu undivided family in india there are many families which are. A married daughter is considered as members of the huf as per the hindu law.
Definition of hindu undivided family or huf under hindu law and income tax act in india huf enjoys various benefits under the income tax. Hindu undivided family (formation, management & taxation) by pawan k jain bharat law house pvt ltd books in india. 5 hours ago after the article on the tax benefits available to a hindu undivided family (huf), let us now look at the legal aspects of an huf and how to set.
Topic of project: the study the differences between hindu joint family and hindu undivided family type of review: in the present context the method followed. As per section 64(2), when an individual, being a member of huf, transfers his property to the huf otherwise than for adequate. An effective way to save tax, as advised by tax consultants, is to form a hindu undivided family the principle of taxation of hindu undivided. As per the income tax act, 1961 (â€œthe actâ€ ), hindu undivided family (huf) is a separate legal entity and has an identity as an artificial. A hindu joint family or hindu undivided family (huf) or a joint family is an extended family arrangement prevalent among hindus of the indian subcontinent ,.
As per original hindu law “hindu undivided family” under the income tax act 1961, “hindu undivided family” is one of the taxable entities. Should the income-tax act have been simultaneously amended to exclude sikhs and jains from the definition of huf once they were declared. There was a time when an huf was useful as a tax-saving device now that it is possible to save tax on investible funds irrespective of the size,.
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. The first and foremost reform in pursuing and securing a uniform civil code for all citizens of india is to abolish the hindu undivided family. How to form an hindu undivided family what are the advantages and disavantages of forming an huf in this detailed guide by h&r block.
Find out huf meaning, how to save income tax by forming a huf, how to open a huf account and the hindu undivided family rules. If not chosen with care, complications outweigh the tax benefits that a hindu undivided family gets. I am the karta of a hindu undivided family (huf) consisting of myself, wife and son i propose to make substantial gifts out of sale proceeds of. A joint family or undivided family is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many.