Joint Hindu Family (HUF) is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law. Karta of the HUF is the Head of the family who is authorized to do business on behalf of the HUF. A HUF is also allowed to purchase assets in its name.
What do you mean by HUF business?
The Joint Hindu Family Business or the Hindu Undivided Family (HUF) is a unique type of business entity. … The head of such a Joint Family Business is the eldest member of the family, the “Karta”. He is the main person responsible for the business and the finances.
What do you mean by Hindu joint?
According to Mitakshara law a Hindu joint family consists of the common ancestor and all his lineal male descendants up to any generation together with the wife(s) or widows and unmarried daughters of the common ancestor and of the lineal male descendant. … It can consist of any degrees of generations.
What are the benefits of joint Hindu family business?
The chief advantages of Joint Hindu Family Business are given below:
- Easy to Start: It is very easy to start the Joint Hindu Family Business. …
- Efficient Management: …
- Secrecy: …
- Prompt Decision: …
- Economy: …
- Credit Facilities: …
- Natural Love between Members: …
- Freedom regarding Selection of Business:
What are the examples of joint Hindu family business?
Some examples of HUF are TATA Group and Haldiram. Lot of joint Hindu family business are divided into family members during last 30 years or so.. Ambani..after Dhirubhai decided in to two ..but interesting fact is that next generation join it making it again joint family.
What is Joint Hindu Family business class 11?
Joint Hindu Family (HUF) is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law. Karta of the HUF is the Head of the family who is authorized to do business on behalf of the HUF.
Can husband and wife create HUF?
It consists exclusively of male members, much narrower than Hindu Undivided Family. … To create HUF, at least two coparceners are required either son or daughter. Therefore only husband and wife cannot create an HUF, unless the property has been received by a coparcener on partition or otherwise.
What is Hindu joint family in law?
A Hindu undivided family or HUF is a legal term related to the Hindu Marriage Act. … In the case of Surjit Lal Chhabra 101 ITR 776 SC, joint family and undivided family are synonymous: “A joint Hindu family consists of persons lineally descended from a common ancestor and includes their wives and unmarried daughters.
What do you mean by joint Hindu family and Coparcenary?
People of all the 8 generations together constitute a Joint Hindu Family whereas till the time A is alive from him up to three generations, a coparcenary is formed i.e. A, B, C, and D are coparceners.
What is a joint family answer?
A joint family is a form of family that consists of two or more generations from the same paternal or maternal line that shares a home and lives together. It’s a form of extended family that consists of two or more parents and their children that live together.
What are the advantages and disadvantages of the Joint Hindu Family?
Family members become co-parceners in the firm by virtue of their birth in the family. Moreover no registration is required for a Joint Hindu Family firm respect of minimum or maximum members. Prompt Decision: -The Karta has complete control over his business. He takes all the business decisions.
What is the role of Karta in Joint Hindu Family business give any five points?
The most basic duty of a Karta is to provide food, shelter, clothing, etc. To the members of the joint family. His many responsibilities include: Maintenance: all coparceners, from the head of the family to the younger members, have the intrinsic right to maintenance.
Which property is used as capital of Joint Hindu Family business?
Unlimited liability of Karta: The liability of the Karta is unlimited in a joint Hindu family firm. In other words, if the business assets are insufficient to meet the business debts, then the personal property of the Karta can be utilised for the purpose.
Is Reliance an HUF?
Control of Reliance Industries could hinge on whether the late Dhirubhai Ambani’s investment companies and trusts, which control a 46.67 per cent stake in Reliance Industries, were registered under Hindu Undivided Family (HUF) law.
What is joint family with example?
Thus, a patrilineal joint family might consist of an older man and his wife, his sons and unmarried daughters, his sons’ wives and children, and so forth. …
Who are Coparceners?
Under the Hindu Law, the coparcener is a term to indicate those male members of a Hindu family who have an undivided interest over the ancestral property by birth. They are the head of the family or Karta and the three subsequent generations of the Karta which include his sons, grandsons, and great-grandsons.