HINDU UNDIVIDED FAMILY(HUF)/JOINT HINDU FAMILY

Meaning-The business carried out by the male members of a Hindu Undivided Family, is called Joint Hindu Family business. This kind of business is governed by the Hindu Succession Act, 1956.

 System used in HUF:-

1- Dayabhaga: This system is applicable only in West Bengal. Under this system, the male as well as the female members of HUF can become Coparceners.

2- Mitakashra: This system is applicable in all over the India except West Bengal. Under this system the male as well as female members of HUF can become Coparceners in accordance with Amended Hindu Succession Act, passed on December 2004.

 

Meaning of Coparceners:- The members who share the ancestor's property and profit of HUF business, are called Coparceners.

Features of HUF:- 

• In HUF, a person automatically become a member by taken birth.

• The HUF business is managed and controlled by the senior male person of the family, is called 'Karta'.

• The liability of Karta is unlimited and rest of the member's liability is limited.

• In this business, minimum must be two persons and maximum members have no limit.

• The HUF business continues even after the death of karta. After the first generation, second generation control the business.