What are the two types of joint Hindu family business?
The business ventures of such a family model are strictly controlled by the Hindu Law, which is made up of two components, the Dayabhaga and the Mitakshara. The Dayabhaga system is widely followed in West Bengal and Assam, wherein, both male and female members of the family are allowed to be co-parceners.
What is the basis of membership in joint Hindu family business?
The answer given by sheena is correct. The basis of membership in a Joint Hindu Undivided Family is birth in that particular family and three successive generation can be members in the business of Joint Hindu Undivided Family.
How is joint Hindu family business is governed?
It is governed by the Hindu Law.
The business is controlled by the head of the family who is the eldest member and is called karta. All members have equal ownership right over the property of an ancestor and they are known as co-parceners.
What is joint family system in business environment?
It is a co-operative institution. Similar to a joint stock company, in which there is a joint property. The head of the family is like trustee who manages the property of the family for the material and spiritual welfare of the family members. The total earnings of all the family members are pooled together.
What are the two conditions for formation of Joint Hindu Family business?
1) Two male members should be there in the business of HUF. Thus, one person cannot start this type of business. 2) Condition related to property inherited by a Hindu Family from his great grandfather.
What is the meaning of Coparcenary system?
A coparcenary is a smaller unit of the family that jointly owns property. A coparcenary consists of a ‘propositus’, that is, a person at the top of a line of descent, and his three lineal descendants — sons, grandsons and great-grandsons.
What is the purpose of HUF?
Basically the logic behind forming an HUF to save tax is to avail the benefit of an extra PAN Card legally. As the Income of the Family is not taxed in the hands of any specific Individual, a new PAN Card is allotted to the HUF and Tax would be paid by the Family using this PAN Card.