Jan 10, 2019 8 nov introduction joint hindu family affection business and target pdf project on joint hindu family an affectionate business,ask latest. A joint family includes kinsmen, and generally includes three to four living generations, including uncles, aunts, nieces, nephews, and grandparents living together in the same household. Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. Joint hindu family business is the oldest and specific form of business organization found only in india. A joint family may encompass countless generations. It is for karta to allot funds to the members and look after needs and requirements, so long as family remains joint, no member can ask for any specified share in the income. In such a case he can define and specify his share along with his sons and thus effectuate a.
Narayanan, a hindu father under mitakshara law can affect a partition among his sons even in the lifetime of karta of the joint family and such partition would be binding on them. Joint hindu family business, though is an enlarged form of sole trading concern but it enjoys stability. Hindu undivided family business it is a precise kind of business structure found only in india. Joint hindu family business an affectionate business. Find out the essential characteristics of joint hindu family. The common indian business of the family is a distinct form of organization peculiar to india. The manager of the hindu joint family or karta is required to declare all sources of income in form tj. It is one of the oldest form of organizations and in existence only insome parts of the country. Disadvantages of joint hindu family business 1 limited. For the purposes of assessment of tax, the revenue statutes use the expression, hindu undivided family. This form of organization has ownership in thehands of members of a hindu undivided family.
Joint hindu family business free download as word doc. Chapter 4, joint hindu family business and cooperative society. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. As per hindu law, in case of properties not acquired with the aid of joint family property, it is presumed that property acquired by coparceners by working together is joint family. Joint hindu family business is a type of business organization which is found only in india. Huf is purely a creature of law and cannot be created by an act of parties except in case of adoption and reunion. The entire law relating to hindu undivided family huf. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. A joint hindu family is normally joint in worshipkitchen business. The business of joint hindu family is controlled under the hindu law instead.
The chief advantages of joint hindu family business are given below. The joint hindu family business is a distinct form of organization peculiar to india. It is general rule that all members who works or do business out of joint family property must hand over income to karta. Joint hindu family business definition, examples, diagrams toppr. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. This appears to be slightly different from the definition of a hindu joint family. Jan 21, 2020 in a joint hindu family firm minor is a partner.
Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. It is governed by the hindu law, which is one of the several religious laws. Understanding the concept of hindu undivided family. Let us learn about this form of organisation and its unique features. Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor. Oct 21, 20 joint family is an empowered form of family. Characteristics of joint family system in india 1051 words. Karta of a hindu joint family powers and responsibilities. Partition under hindu joint family properties law times journal. It is given due recognition by the income tax act, 1961, and by the joint hindu succession act, 1956, but it lacks legal status. The business does not need any agreement as membership is by birth. Wherever, there is hindu undivided family, there is the scope of joint hindu family business. Hindu joint family is a unit and in all matters it is represented by its karta. Introduction the position of the karta or the manager of the hindu joint family finds its roots in the patriarch of the ancient family units.
The success of joint hindu family business is mostly dependent upon the efficiency of the karta and the mutual understanding between the coparceners. Another form of business which is owned by the members of a joint hindu family and in which the family possesses some inherited property. It has no legal entity separate and distinct from that of its members. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. The concept of joint family under hindu law as well as the huf in income tax act, 1961 is broadly the same.
It is important to note that the joint hindu family firm with the joint ownership of the business is created by the operation of hindu law and not. This article provides information about the characteristics of joint family system in india. The unity among its members is a great strength to face and remove any obstacles with sheer courage. In this lesson let us find out more about these types of business organisations. A business, which continues from one generation to another generation is known as joint hindu family business or firm. Feb 03, 2016 the property of a joint hindu family may consist of ancestral property, joint acquisitions self acquisitions thrown into the common stock however, even in the absence of any property, the joint hindu family may still be in existence as a joint hindu family damodar krishnaji nirgude v. Joint hindu family business definition, examples, diagrams.
Improving entrepreneurship and family business effectiveness through research and sharing of best practices, and familybusiness. It often creates parasites who love to feed on others income. The formation of a joint hindu family business requires at least two members in the family and ancestral property to be inherited by them. Joint hindu family business is a different type of organization, which is found only in india. It is the result of hindu undivided family system followed in india. A hindu undivided family or huf is a legal term related to the hindu marriage act. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. It is not practised or followed elsewhere in the world. Huf or hindu undivided family is defined under the hindu law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. The legal business which is carried by them known as joint hindu family business 18. The joint hindu family business is a distinct form of organisation peculiar to india. Joint hindu family business meaning, examples and conclusion.
The operation of law creates a joint hindu family business. The joint hindu family business can be dissolved only at the will of all the members of the family. These businesses are managed by all members of a joint hindu family. Before the enlightenment of greece and the empire of rome, there was family business,said willium o hara, an academician specializing in family business to demonstrate the longevity and endurance of the family businesses tradition. It does not have any separate and distinct legal entity from that of its members.
The property of a joint hindu family may consist of ancestral property, joint acquisitions self acquisitions thrown into the common stock however, even in the absence of any property, the joint hindu family may still be in existence as a joint hindu family damodar krishnaji nirgude v. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. Hindu undivided family will enjoy all exemptions and deductions. Jul 29, 2017 joint hindu family business 11th class chapter 2nd part3. The joint family is the bedrock on which hindu social organization is built. Joint hindu family business is a distinct type of organisation which is unique to india. Joint hindu family firm is created by the operation of law. It is a group composed of a number of family units living in separate rooms of the same house. Joint family helps foster love within a family so that people can be closer to each other for the good of the family. Joint family property or coparcenary property signifies the property in which all the coparceners have community of interest and unity of possession.
Even within india its existence is restricted to only certain parts of the country. When a business enterprise is run by the family member and they run the business as family business is called joint hindu family business. Before the industrial revolution, there was family business. Partition under hindu joint family properties law times. This is special form of business organization, which now exists only in india. Sep 22, 2016 huf or hindu undivided family is defined under the hindu law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. Property acquired in the course of some business carried on by the persons constituting a joint hindu family, takes the characteristic of joint family property. Jun 02, 2016 property acquired in the course of some business carried on by the persons constituting a joint hindu family, takes the characteristic of joint family property.
The most senior member of the male member a combined hindu family is considered as a familys charter if he or she is fit to act as such that heshe does not suffer from any physical or mental deficiency. Davis, the joint family consists of males having a common male ancestor female offspring not yet married and women brought into the group by marriage. The joint hindu family business is controlled under the hindu law instead of the. For the indian students of sociology, the study of the indian family system deserves special attention, not only because they are born in indian families but also for here the family system differs in material respects from the western family system. Rut they deal only with a norm and not the reality. However, with urbanization and economic development, india has witnessed a break up of traditional joint family into more nuclearlike families, and the traditional joint family in india accounted for a small number of indian households.
A hindu joint family has no legal entity distinct and separate from that of the members who constitute it. Nowhere else in the world is this a legal form of business entity. Property under hindu law may be divided into two classes, viz. Jan 28, 2015 the concept of joint family under hindu law as well as the huf in income tax act, 1961 is broadly the same. Any single member has no right to get the business dissolved. Panikkar has rightly observed, the caste system, the village community and the joint family system constitute the basic pillars of the indian social system.
Indias 10 oldest family owned businesses siliconindia. Jointfamily property or coparcenary property signifies the property in which all the coparceners have community of interest and unity of possession. The business of joint hindu family is controlled under the hindu law instead of partnership. Nevertheless, this type of business is losing its ground with the gradual decline in the joint hindu family system. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf.
In such a case he can define and specify his share along with his sons and thus effectuate a separation among them. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. What are the different classes of property under hindu law. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary. Basic information 1 2 name of hindu joint family as registered with lhdnm. A single male or female cannot make a hindu joint family even if the assets are purely ancestral.
Joint hindu family business is a form of organization which exists only inindia. Role of karta in hindu undivided family huf by sumit mishra download pdf the author, sumit mishra is a 2nd year student of allahabad university. Finally, the spirit of oneness prevails in a joint family system. It is said that the joint hindu family firm comes into existence by the law of inheritance. Before the multinational corporation, there was family business.
Features of joint hindu family business definition. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of. In this blog post, shambhavi kumar, a student of jindal global law school, sonipat, analyzes the powers and responsibilities of the karta of a hindu joint family. The head of the family is the head of the business also. A huf is a fluctuating body, its size increases with birth of a member in the family and decreases on death of a member. The karta is the eldest member of the family and hence is the controller of the business. The hindu undivided family is treated as the separate entity of the purpose of assessment of tax of the joint family under income tax act, 1961 and wealthtax act, 1957. It also helps foster unity as living together means that they have to work together with the goal of a sustainable coexistence. A joint hindu family is normally joint in worshipkitchenbusiness. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. The joint family is very important and has a very significant gesture to the indians which is why many families prefer to hold such methods of coexistence. Joint hindu family business family marriage scribd. It comes into existence by the operation of hindu law. Aug 22, 2010 wherever, there is hindu undivided family, there is the scope of joint hindu family business.
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