FEATUREΓ* Alongwith Tax PlanningΓ* As Amended by Finance (No.2) ACT,2015Γ* With Special Chapter on AOPCONTENTFormation and Management of HUF 1. Introduction 2. Hindu Undivided Family 3. Coparceners and Members of HUF 4. Blending of Individual Property with that of HUF 5. Partition of Hindu Undivided Family 6. Recognition of Partition Under Section 171 of Income Tax Act, 1961 7. HUF after enactment of Hindu Succession Act, 1956 8. Hindu Adoption and Maintenance Act, 1956 and HUF 9. Creation of HUF10. Business and Hindu Undivided Family11. Assessment to Income Tax of Hindu Undivided Family12. HUF and Wealth Tax13. Gifts by or to HUF and Gift Tax14. Judicial Controversies: Resolved and unresolved15. HUF and Tax Planning16. FAQs on UF Related Aspects17. Association of Persons (AOP) 18. Taxation of AOPAnnexureABOUT THE BOOKHindu Undivided Family, though a taxable entity, separate and distinct from its members, has not been defined in any of the tax statutes. In order to understand as to what constitutes an HUF, how it comes into existence, how it acquires property and in what circumstances it ┬╖can be partitioned or reunited and how it is subjected to tax, one has to study not only the tax laws but various Hindu Laws evolved over centuries varied by custom and usage, elucidated by judicial interpretation and codified by mid fifties. This book, authored by two eminent persons who had served with distinction the Income tax Department for a longs time, endeavors to explain those provisions of Hindu Law which have a bearing on the assessment and levy of different direct taxes on HUF highlighting the practical rather than the theoretical aspects of the law. HUF as a taxable unit has been a useful tool in tax planning, though blunted by some recent amendments to the direct tax laws. Indeed, a proposal was even mooted to do away with HUF as a taxable entity primarily on the ground that it let itself to schemes of what is called tax avoidances as opposed to tax evasion. Nevertheless, given the resilience of Hindu Law it can still play an important part in an individual’s legitimate attempt to reduce the tax payable by him without in any way falling foul of the law. This revised Sixteenth Edition has been updated by incorporating the amendments made to direct tax laws by Finance (No.2) Act, 2014 and case law reported up to June, 2014. Various Statutes relevant to the study on HUF have been reproduced in the Annexure. Specimen Formats for various purposes have also been incorporated. This is a well documented work on the law relating to formation of HUF and its taxation. ABOUT THE AUTHORSShri S. R. KharabandaLate Shri S.R. Kharabanda was a retired Commissioner of Income-tax who served in the afore-mentioned capacity at Shillong, Kanpur, Lucknow, Patna a Agra. He also worked as a Regional Director, COMPANY Law Administration, Northern India. After retirement he was practising as aavocate and tax consultant and had been retained as a taxation and financial advisor by a number of companies. An M A. in Mathematics he also topped the LL.B. Examinations of Kanpur University and was awarded the Chancellor Medal. He was on the editorial board of the Journals. “Taxation”, “Taxman” and “Judgement Today” He has extensively written on taxation and allied subject in professional and economic journals. He was abo author of the book “Search & Seizure under Income Tax Law” and co-author of the book “Tax Deduction & CollectIon at Source” WIth Shn Arun Kharabanda He has also re-written the fourth editIon of the book “Income Tax Pleadings, Practice and ProcedureShri Prem NathShri Prem Nath is also a retired officer of the Indian Revenue Services who had successively functioned as Income Tax Officer, Appellate & Inspecting Assistant Commissioner and Commissioner of Income Tax has had extensive experience of working as financial advisor to a number of ministeries of the Central Government and served as director of a few public sector companies. He was a Member of the Appellate Tribunal for forfeited Property the final court of appeal in respect of properties forfeited under the Smugglers & Foreign Exchange Manipulators (ForfeIture of Property) Act. 1976 Keenly interested in taxation laws, he has been contnbuting to professional Journals, mainly on the subject at simplification of tax laws. Both the authors are also co-authors of the following books:(i) “Interest under Direct Tax Laws”;(Ii) “Penalties and Prosecution under the Direct Tax Laws”;(iii) “Law Relating to Depreciation”.V. GopalanV. Gopalan. Advocate is a career legal Journalist with over four decades of rich experience with legal journals like Taxation, Chartered Secretary, Judgments Today, Tax and Corporate Referencer, Current Tax Com News and Company Law Journal. Presently he is Consulting Editor to ICSI and IS on the panel of Editors of ICAI. He has to his credit over two hundred and fifty articles on different aspects of law, particularly taxation and corporate laws published In all leading law journals. He is the Co-author of ‘Tax Practice Manual’, published twice by Commercial Law Publishers (I) Pvt. Ltd. and has been the Revising author of several books and Digests for several years now.
Prem Nath, S R Kharabanda, V Gopalan
17th Edition, 2015