Which among the following is the main characteristics of Hindu undivided family business?
Features of a HUF
The formation of a HUF does not require any documentation and admission of new members is by birth. Liability: The liability of all the various co-parceners is only up to their share of the property or business. So they have limited liability.
What is Hindu undivided family business?
Hindu Undivided Family business is a precise kind of business structure found only in India. … The business is managed by the head of the family (eldest member) and he is called Karta. However, all the members hold equal ownership over the property of an ancestor and they are called as co-parceners.
Which one of the following is not the characteristics of joint Hindu family business?
The youngest member of the family is Karta is not the characteristic of Joint Hindu Family Business. Explanation: The ‘Joint Hindu family business’ is very popular in India. It is ruled by the ‘provisions of the ‘Hindu Law’.
What you mean by Hindu undivided family business describe its merits and demerits?
The HUF business does not require any agreement or documentation as membership is by birth. It is governed by the Hindu Succession Act, 1956. Liability: The liability of all members except the karta is limited to their share of the co-coparcenary property of the business. Thus their liability is limited.
What are the advantages of Hindu undivided family?
Advantages of Creating HUF:
- Just like other individuals, even HUF members are liable to pay taxes every year. …
- The head of a HUF has all the power to sign the relevant documents on behalf of other members in her/his family. …
- An adopted child may also become a member of the HUF.
Who comes under Hindu undivided family?
Hindu Undivided Family (HUF) consists of all persons directly descended from a common ancestor, and also the wives and daughters of the male descendants. For instance, you and your spouse along with your two children can create an HUF and get certain relaxation in computation of taxes.
Can husband and wife form HUF?
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. However, there is no impediment to starting a new HUF by gift from family members.
Can we deposit cash in HUF account?
(3) My understanding about this issue is, you can deposit upto Rs. 300000 in to your HUF account and no tax liability will be there on HUF. (considering Rs. 200000 tax exemption limit and Rs.
What are the features of joint Hindu family?
Characteristics of a Joint Hindu Family Business:
- Governed by Hindu Law: The business of the Joint Hindu Family is controlled and managed under the Hindu law.
- Management: …
- Membership by Birth: …
- Liability: …
- Permanent Existence: …
- Implied Authority of Karta: …
- Minor also a Partner: …
How many types of joint are there in Hindu family business?
Here the liability of Karta is unlimited & rest all have liability as per their share in the business. Membership in business is acquired either by birth in family or marriage to a male member of the family. There are basically 2 types of joint Hindu family business: Mitakshara & Dayabhagha.
Why is the joint Hindu family unique?
Joint Hindu Family Firm is created by the operation of law. It does not have any separate and distinct legal entity from that of its members. The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act.