Hindu undivided families (HUFs) have been conferred with a special incentive under the Income Tax Act in the sense that they can have an entity separate from the individuals comprising it. HUF is treated as a separate entity eligible for basic exemption limit on its own, which is Rs. 2,50,000 for the assessment year 2016-17. Thus a Hindu family can enjoy two basic exemption limits one for the Karta in his individual capacity and another for his HUF, thereby, paying no tax upto the income level of Rs. 5,00,000 for the assessment year 2016-17. Apart from that, an HUF is also entitled to certain tax incentives which are available even to individuals. These include deduction under section 80C among others.
To constitute and maintain an HUF, one has to have some basic understanding, concept of Hindu Law. This book offers discussion of the relevant provisions of the Hindu Law and taxation of HUF in a convenient single volume format. The basic principles of Hindu Law are fully explained with the help of judicial pronouncements so as to enable the readers to deal with such intricacies of Hindu Law which impact the HUF status for income-tax purposes. All aspects relating inter alia to Creation of HUFs, Partition of HUFs, so vital for the assessment in HUF status, are discussed in reasonable detail.
The Hindu Succession (Amendment) Act, 2005 has brought about a sea change in the matter of devolution of Hindu property. This Amendment Act by substituting section 6 of the Hindu Succession Act, 1956 effective from 9-9-2005, has put the daughter of a coparcener on the same plane as was till then being enjoyed by the sons provided father is living on that date. A lot of controversies has arisen as to applicability of this substitution. We have devoted enough attention to this and incorporated various recent judgments which explain this all important amendment. One thing is however sure. Coparcenary right of daughters is going to facilitate constitution of more and more of HUFs, making the entity of HUF all the more attractive as a tax planning tool.
Apart from discussing the various aspects relating to Hindu Law, this book also comprises discussion of the relevant Provisions of the Income Tax Act, 1961 and the Wealth Tax Act, 1957 as applicable to HUFs in sufficient detail, all with the help of related case law. Wealth tax is not however applicable from the assessment year 2016-17.
Section A : Shastraic Hindu Law Aspects Relevant to Taxation of HUF,
Section B : Codified Hindu Law in Taxation Perspective,
Section C : Creation of HUF : Ways Out, Implications and Advantageous Plannings Regarding,
Section D : l HUF Property l Family Settlement l Ancestral Nucleus l HUF Business,
Section E : HUF or Individual Property,
Section F : l Partition of HUF l Ways Out l Implications l Plannings Possibilities, Section G : Hindu Females and Hindu Daughters : Special Provisions As to,
Section H : Hindu Females and Hindu Daughters : Special Provisions As to,
Section I : Death of Male Member : Implications and Consequences,
Section J : Income Tax Assessment of HUF,
Section K : Income Tax Provisions Applicable to HUFs,
Section L : Tax Deduction at Source & Tax Collection at Source,
Section M : Particular Income Tax Issues Relevant to HUFs,
Section N : Wealth Tax Assessment,
Section O : Miscellaneous Deeds and Documentation Concerning HUF