Asked by: Ranulfo Sagastareligion and spirituality hinduism
What are the main characteristics of HUF?
Last Updated: 28th May, 2020
- Governed by Hindu Law: The business of the Joint Hindu Familyis controlled and managed under the Hindu law.
- Membership by Birth:
- Permanent Existence:
- Implied Authority of Karta:
- Minor also a Partner:
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People also ask, what are benefits of HUF?
The major advantage of creating a Hindu UndividedFamily Account is that the family gets an extra PAN Card andcan split the family income and thereby resulting in tax saving andreducing the tax outgo. This is the major reason why CA's advisetheir clients to create a HUF and save taxes of uptoRs.
Additionally, what is difference between individual and HUF? All the members of the Karta's family can be members ofthe HUF. The male members are called coparceners, while thefemales are referred to as just members. The differencebetween the two is that any of the coparceners can demandpartition of the HUF.
Also to know is, what is HUF account who can open it?
As soon as Hindu individual is married he canopen an account in the name of his HUF and whenthe child is born, he will automatically become member ofhis fathers HUF. Under income tax, HUF is treated asa separate person. So you can divide your income in twoparts.
What is the meaning of HUF?
Hindu Undivided Family (HUF) Concept ofHUF. The term 'Hindu Undivided Family' has not been definedunder the Income Tax Act. It is defined under the Hindu Law as afamily that consists of all persons lineally descended from acommon ancestor, including wives and unmarrieddaughters.