What is HUF?
A Hindu joint family, also referred to as a Hindu undivided family, represents an extended familial structure that is widely observed across the Indian subcontinent, especially within the geographical confines of India, composed of multiple generations cohabiting within a singular domicile, all interconnected through a shared lineage. What is HUF? The Hindu Undivided Family (hereinafter referred to as ‘HUF’) is classified as a ‘person’ under section 2(31) of the Income-tax Act, 1961. The HUF is considered a distinct entity for tax assessment as delineated by the Act. Except for the state of Kerala, the HUF is acknowledged throughout the entirety of India.
Family Composition
Historically, for numerous generations, India exhibited a distinctive and enduring tradition of the Joint Hindu Family, also referred to as the undivided family. This familial structure is characterized as an extended family configuration that is prevalent across the Indian subcontinent, comprising multiple generations cohabitating within a singular residence, all interconnected through a common kinship. A joint family typically includes a husband and wife, their sons, their unmarried daughters, as well as the wives and children of their sons. This familial arrangement (sons, their spouses, and offspring, alongside unmarried daughters) is perpetuated across as many generations as are currently living. The presence of any deceased members does not affect the legal status of the family unit.
The family unit is presided over by a senior individual designated as a ‘Karta’, typically the eldest male, who is responsible for making determinations concerning economic and social issues on behalf of the entire familial collective. The other constituents of the family are referred to as ‘coparceners’. The spouse of the patriarch generally exerts authority over domestic affairs and minor religious observances, frequently holding substantial sway over household matters. The family’s financial resources converge into a communal fund, from which provisions are allocated to address the requirements of all members, a process governed by the family heads. Nevertheless, in light of urbanization and economic advancement, India has experienced a fragmentation of the traditional joint family structure into more nuclear family configurations, with the traditional joint family constituting a diminishing proportion of Indian households.
What is HUF? A Hindu undivided family, commonly referred to as a Hindu Undivided Family or HUF, is a legal concept associated with the Hindu Marriage Act. Female members are also entitled to a share of the property within a Hindu Undivided Family (HUF). The term is mentioned in the Income Tax Act, but it is not explicitly defined within the Act. Key factors of Hindu law must be considered when assessing the income of a Hindu Undivided Family under the Hindu Succession Act of 1956 and the Income Tax Act of 1961, as well as its wealth status. Additionally, the provisions of the Hindu Succession Act of 1956, as amended by the Hindu Succession (Amendment) Act of 2005, also impact the assessment of the HUF’s income and wealth under the Income Tax Act of 1961.
In the matter of Surjit Lal Chhabra 101 ITR 776 SC, the terms “joint family” and “undivided family” are considered equivalent. A joint Hindu family is defined as comprising individuals who are lineally descended from a shared ancestor, along with their wives and unmarried daughters. Upon marriage, a daughter no longer remains a member of her father’s family and instead becomes part of her husband’s family.
In 2016, a ruling by the Delhi High Court declared that the oldest female member of a Hindu Undivided Family may serve as its ‘Karta’ (manager).
Connections
Distinct names refer to various family members. The type of relationship can also change. Relationships can be characterized by equivalence, mutual respect, or playful teasing. Nevertheless, contemporary individualism poses a danger to the family unit, and individuals residing in modern joint families often feel restricted or imprisoned under the scrutiny of numerous relatives
In a conventional joint Hindu family, the brothers’ wives have a subordinate relationship: the wife of the patriarch is referred to as ‘Bari Bhabhi’ (in Hindi), which translates to ‘wife of the eldest brother.’ She is commonly regarded as the head of the household after the elders and is responsible for managing household matters and supervising the servants (if present). The younger brothers’ wives usually consult her for advice and approval on any household issues and child-rearing decisions.
Read More: Top 10 FAQs about Hindu Undivided Family (HUF) in India