Our representative will get in touch with you shortly. Updated on : Oct 04, - PM. Read about the Union Budget highlights here. You can save taxes by creating a family unit and pooling in assets to form a HUF. HUF is taxed separately from its members. A Hindu family can come together and form a HUF. A HUF is taxed separately from its members, therefore, deductions such as under Section 80 or exemptions allowed under the tax laws can be claimed by it separately.
For example, if you and your spouse along with your 2 children decide to create a HUF, all 4 of you as well as the HUF can claim a deduction for Section 80C. HUF is usually used by families as a means to build assets. Since Mr Chopra had no siblings, the property held by his father was transferred in the name of the HUF.
The property held by late Mr Chopra earns an annual rent of Rs 7. Mr Rajesh Chopra has an income from salary of Rs 20 lakh.
Due to this tax arrangement, Mr Chopra saved tax of Rs 1,54, Need help with estimating your taxes as an HUF? Our CAs can help you. While there are tax advantages of forming an HUF, you must also meet some conditions —. Though HUF seems like the perfect way to save tax as a family, it comes with its own drawbacks.
Equal rights of members: The greatest disadvantage of opening a HUF is that its members have equal rights on the property. The common property cannot be sold without the concurrence of all the members. Any additions to the family, by way of birth or marriage, become a member of the HUF and get equal rights. A HUF can get too large to manage. Partition: Perhaps the worst nightmare of opening a HUF is closing it down.
May transfer immovable properties for pious purposes or for the benefit of the family. Powers of Alienation The power of alienation cannot be exercised except by Karta the joint family property can be alienated for the following three purposes only: a.
Legal necessity Apatkale b. Benefit of estate of the family Kutumbarthe c. Acts of Indispensable duty Dharmamarthe The Karta can alienate the joint family property with the consent of the coparceners even if none of the above exceptional cases exist and if all the coparceners are adult, the alienation is binding on the entire joint family.
What is PAN Card, uses, how to apply? Disallowing finance charges, which were allowed in earlier years, needs re-consideration — Matter remanded back to AO. Tax Audit Series-2 — Business Vs. March 4, at am. Mrs S. Pai says:. November 5, at am. January 23, at pm. Whether a female can be the kartha Clarify. November 30, at pm. Anand says:. Sir, Please clarify this.
April 22, at am. Hi this is prakash n patel. Kindly send the updates of taxation rules and regulation. Cancel reply Leave a Comment Your email address will not be published. Latest Posts. This means that just as a son can be a Karta, by virtue of being born the eldest, a daughter can also be a Karta given that she was born eldest.
Also, even after being married a daughter retains her right to coparcenary and also the right to be Karta. In fact, a woman may even be a de facto Karta in the family where she marries and a de jure Karta in her family of origin, provided that she is a widow and is the only major in the family she married into and is the eldest in her family of origin.
With this judgement the equal rights of daughters in their HUF have been fully realised. Daughters would have the same rights and liabilities as sons regarding the HUF property for all means and purposes. Inheritance and Succession in case of a Female Karta. Although the following questions have not been answered by any court so far, the answers are based on existing law, judicial precedents and the rationale behind them.
After the amendment, this landmark judgment was a much awaited relief for the female coparceners and a step towards realising equality between the genders.
However, more complex questions will arise regarding the inheritance and succession in case of a female Karta. The answers to such intricate questions can only be speculated at best as there are no precedents, considering the judgment is very recent. However, much is based on the rationale behind it as well as the circumstances of each case.
A female as a Karta has opened up a wide array of possibilities which need to be addressed as soon as possible. Orient Publishing Company, Login Register. Subscribe to blog Subscribe via RSS. Prior to , following persons could be a Karta of the family: 1. Senior most male member: The senior most male member will be a Karta by virtue of the fact that he is the senior most male member.
Junior male member: In the presence of a senior male member, a junior male member cannot be the Karta. On the other hand, Courts in India have given diverse views regarding this: C.
Berai v. Laxmi Narayan [6] - It was held that a widow could be a karta in the absence of adult male members in the family. It was said that the true test is not who transferred the liability of being the karta, but whether the transaction was justified by necessity.
Sushila Devi Rampura v. Income tax Officer [7] - It was held that where the male members are minors, their expected guardian is their mother, who can represent the HUF for the purposes of assessment and recovery of income tax. CIT v Seth Laxmi Narayan Raghunathdas [8] - While considering an issue as to whether a widow can be Karta of her husband's HUF, the court held that a widow was capable of becoming the Karta of the Hindu Undivided Family, which consists of herself along with her two minor sons.
The court reasoned that since in Dayabhaga Law a widow may be a coparcener then she may even be the Karta of the family particularly if she is the only member sui juris left in the family.
0コメント