Joint hindu family business free download pdf kupdf. Thus, the joint hindu family firm is a business owned by coparceners of a hindu undivided estate. Introduction it is a presumption that every hindu family is joint family, they cannot escape from the joint family. 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. Software sites tucows software library shareware cdroms software capsules compilation cdrom images zx spectrum doom level cd. Therefore, it cannot undertake big and risky business. 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.
The operation of law creates a joint hindu family business. It also helps foster unity as living together means that they have to work together with the goal of a sustainable coexistence. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. Introduction a business enterprises is an organisation which is engaged in some business or commercial activity. Joint hindu family firm is created by the operation of law. This animation introduces the learner to various features of a joint hindu family, merits and limitations of the same. Hindu family is joint family when it is joint in food, worship and estate. He is the representative of the family and is considered supreme in the management of the property. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india.
This results in the unity of command and noninterference in the conduct of business. A partnership is dissolved with the death of a partner whereas a joint hindu family firm is not dissolved on the death of its members. Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. Registration is unnecessary, but the rights of its members to sue third parties for claims of debt remains unaffected. Huf is purely a creature of law and cannot be created by an act of parties except in case of adoption and reunion. A hindu joint family has no legal entity distinct and separate from that of the members who constitute it. In every society and at every stage of development we. Whenever, there is hindu undivided family, there is the scope for joint hindu family business. Partition of the huf property can be of two types under the hindu law i. All the family members must be related by blood and they should sign on the document to make it valid.
All business affairs are dealt with by the senior most male member of the hindu family. In law, the karta of a joint hindu family has an implied authority to borrow money, execute documents and give securities for the ordinary purposes of joint hindu family letter signed by all the adult coparceners. The term hindu undivided family has not been defined in the income tax act. There are a number of legal complications in making advances to a joint hindu family concern. The organisation, management, and control of the business is vested in the karta of the family. Joint hindu family cannot be formed or created by any contract or agreement because this organization came into existence by the operation of the hindu law. The joint hindu family business is a distinct form of organisation peculiar to india. A huf is a fluctuating body, its size increases with birth of a member in the family and decreases on death of a member. Historically, for generations south asia had a prevailing tradition of the joint family system or undivided family.
According to hindu law, a hindu can inherit the property from three generations. The concept of joint family under hindu law as well as the huf in income tax act, 1961 is broadly the same. Rut they deal only with a norm and not the reality. Full text of the law relating to the joint hindu family. Partition of property in hindu undivided family property. Hindu joint family not equal to hindu undivided family.
The hindu disposition of property act, 1916 the hindu gains of learning act, 1930 the hindu inheritance removal of. Joint hindu family business an affectionate business. Joint family helps foster love within a family so that people can be closer to each other for the good of the family. All the male members are blood relatives and all the women are either mothers, wives, unmarried daughters, or widowed relatives, all bound by the common sapinda. Advantages this system ensures a greater bonding between the members of the family. Cbse class 11 business studies notes aglasem schools.
The membership in this form of business organisation can be. The two concepts are legally distinct, in the sense that a huf as a concept is used primarily for assessment of income tax and wealth tax while the hindu joint family is a concept defined under the personal laws marital laws, succession, adoption etc of hindus in india. A hindu joint family or hindu undivided family huf or a joint family is an extended family arrangement prevalent among hindus of the indian subcontinent, consisting of many generations living under the same roof. Joint hindu family firm is created by the operation of hindu law. Various forms of business organisation from which one can choose the right one include. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. 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 by.
It is not formed by any agreement like partnership firm. The joint hindu family business is on decline because of the diminishing no. Under hindu law when the joint family status comes to an end there is division of property among members and joint ownership of property comes to an end. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. Joint hindu family business kinship and descent social institutions. The father, if living would generally be the karta of the joint hindu family. 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.
Disadvantages of joint hindu family business 1 limited. The affairs of a joint family are managed by the head of the joint family, who is called the manager or karta. Hindu undivided family was included with in the meaning of the word person in section 231 of the income tax act but hindu undivided family is not defined in the income tax act. The family members of hindu undivided family mutually agree on how the joint property should be settled or distributed among each other with mutual consent. Partnership is a voluntary association of two or more persons who agree to carry on some business jointly and share its profits and losses. The manager of the hindu joint family or karta is required to declare all sources of income in form tj. Partition means ending the status of joint hindu family. In this form of business organization two or more persons come together to undertake. Joint hindu family system authorstream presentation. Joint hindu family firm and joint stock company omtex. Forms of business organisation class 11 notes business. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. When a business enterprise is run by the family member and they run the business as family business is called joint hindu family business. Introduction family is one of the universal and permanent institutions of mankind.
The exclussion has been because the term hindu undivided family has already been defined in the hindu law and the. Without sharing the family business to external parties and using the family business profit for the well being of particular family. It does not have any separate and distinct legal entity from that of its members. There are many joint family businesses in india, but i dont know what is a joint hindu family business. The institution of joint hindu family is very ancient. The entire law relating to hindu undivided family huf. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization. Kodi archive and support file community software vintage software apk msdos cdrom software cdrom software library. Give an example of joint hindu family business in india.
Joint hindu family business has generally limited financial and managerial resource. The joint family system is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same home, all bound by the common relationship. Partnership is a voluntary association of two or more persons who agree to carry on some business. It is said that the joint hindu family firm comes into existence by the law of inheritance. Joint hindu family business is a different type of organization, which is found only in india. The joint hindu family business is controlled under the hindu law instead of the. The underlying essence of a joint family is the fact that. Joint hindu family business free download as word doc. Partnership firm joint hindu family firm omtex classes. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary.
The firm is owned by the members of the family who have inherited their ancestral property. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. A patrilineal joint family consists of an older man. There are some legal formalities which all the members have to abide. It has evolved from the ancient patriarchal family which can be described as the earliest unit of human society. The existence of the joint hindu family firm does not come to an end by the death, insanity, or bankruptcy of any coparcener. 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. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. The business of joint hindu family is controlled under the hindu law instead of partnership act. The traditional assumption behind such a deduction is that every hindu family is normally a joint family.
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