Asked by: Vojtech Liverovskyreligion and spirituality hinduism
How does Hindu undivided family work?
Also know, what does Hindu undivided family means?
The term 'Hindu Undivided Family' has not beendefined under the Income Tax Act. It is defined underthe Hindu Law as a family that consists of allpersons lineally descended from a common ancestor, including wivesand unmarried daughters. A HUF cannot be formed by a groupof people who do not constitute afamily.
In respect to this, can we pay commission to HUF?
The insurance under HUF would belong to andbecome the assets of the HUF. However, PPF account in thename of HUF is no more permitted as clarified by theministry of finance in 2005. To claim deduction under section 80C,an HUF can contribute to the PPF account of its members andclaim a tax deduction.
An HUF is a family which consistsof all persons lineally descended from a common ancestor,and also the wives and daughters of the male descendants. Itconsists of the karta, who is typically the eldest person orhead of the family, while other family membersare coparceners.