Income Tax - Article explains What is HUF, How HUF is formed, Evaluation of HUF, How HUF Helped in Tax Planning, Basic criteria for an HUF, Important terms which are used in a joint Hindu Family Business and Limitations of a Joint Hindu Family Business. What is HUF ? HUF stands for Hindu Undivided Family in which members […]...
Read MoreIncome Tax - A Hindu Undivided Family is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. Hindu Undivided Family is treated as a person under section 2(31) of the Income-tax Act, 1961. HUF is a separate entity for the purpose of assessment under the Act. A HUF [&hell...
Read MoreIncome Tax - Hindu Undivided Family (HUF) v. Private Family Trust: It’s time to reconsider and make wise structuring of family investments! With the rise of nuclear families, shifting demographics, the deterioration of patriarchal traditions in Hindu households, increasing diversity in outlook and lifestyle among generations, the expansion of ed...
Read MoreIncome Tax - Any male or female person born in a joint family under Hindu law who is within four levels in lineal descendent from the common male ancestor is considered as a coparcener and anyone who becomes part of the family other than by the virtue of birth (I.e., by marriage) is treated as a member....
Read MoreIncome Tax - Female heirs of a Hindu governed by the Dayabhaga School of Hindu Law dying intestate could not impress upon their inherited property the character of joint family property. The properties inherited from her husband was assessable in the hands of the assessee in the status of individual. It means that female members of a HUF cannot form H...
Read MoreIncome Tax - In a move expected to make family settlements and transfer of shares more taxing, the government plans to tighten anti-abuse provisions in the Income Tax Act, by including share sales in unlisted companies below fair market value under the ambit of regulations....
Read MoreIncome Tax - From now on, when you get a gift in kind, valued at more than Rs. 50,000, from your parents or other relatives, make sure you have a sworn affidavit declaring the donor your kin.The Central Board of Direct Taxes has ruled that any such gift will be taxable for the donee unless it is from relatives or given during occasions such as marriag...
Read MoreIncome Tax - The Direct Taxes Code proposes to substantially raise the threshold limit for levy of wealth tax to Rs 50 crore from Rs 30 lakh, a suggestion, if accepted, would save many people from paying tax on their wealth. Finance Minister Pranab Mukherjee in the budget for 2009-10 had doubled the threshold limit for levy of wealth tax to [&helli...
Read MoreIncome Tax - Enhancement of the limit for payment of wealth tax under the existing provisions of section 3 of the Wealth-tax Act, wealth tax is charged every year in respect of net wealth, on the valuation date, of every individual, Hindu undivided family and company at the rate of one per cent. of the amount by which the net wealth exceeds Rs.15.00 l...
Read MoreIncome Tax - If you are thinking of filing your income tax returns online, think twice. It is very easy for anyone to hack into your account and have access to your income tax details. All a hacker needs to know is - 1. Your name 2. Permanent account number (PAN) and 3. Your date of birth. He first needs to log onto the e-filing website (www.incometa...
Read MoreS.K. Agarwal (HUF) Vs ITO (ITAT Delhi) - S.K. Agarwal (HUF) Vs ITO (ITAT Delhi) It is an admitted fact that during the AY 2015-16, the assessee HUF sold a plot of land and earned capital gain which it claimed exempt under section 54F as the assessee purchased a residential house. The only cause of denial of exemption by the Revenue is that...
Read MoreRajeshwari Vs Bhunu Ram (Chhattisgarh High Court) - Rajeshwari Vs Bhunu Ram (Chhattisgarh High Court) Section 20 of the Hindu Adoptions and Maintenance Act, 1956 speaks about the maintenance of children and aged parents. Sub section(3) of Section 20 causes obligation of a person to maintain his or her aged or infirm parent or a daughter who is unmarr...
Read MoreArunachala Gounder (Dead) By Lrs. Vs Ponnusamy and Ors. (Supreme Court of India) - The Supreme Court on Thursday said the daughters of a male Hindu dying without a will would be entitled to inherit self-acquired and other properties obtained in the partition by the father....
Read MoreBeereddy Dasaratharami Reddy Vs V. Manjunath and Another (Supreme Court of India) - Beereddy Dasaratharami Reddy Vs V. Manjunath (Supreme Court of India) Right of the Karta to execute agreement to sell or sale deed of a joint Hindu family property is settled and is beyond cavil vide several judgments of this Court including Sri Narayan Bal and Others v. Sridhar Sutar and Others,2 w...
Read MoreKiran Devi Vs The Bihar State Sunni Wakf Board & Ors. (Supreme Court of India) - Kiran Devi Vs The Bihar State Sunni Wakf Board & Ors. (Supreme Court) 1. Supreme Court on Hindu Undivided Family, there cannot be any Presumption That Business Run By Karta In Tenented Premise Is Joint Family Asset. 2. The contract of tenancy is an independent contract than the joint Hindu famil...
Read MoreNotification No. GSR 956(E) - (07/12/2010) - an account opened on behalf of a Hindu Undivided Family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making...
Read MorePRESS RELEASE No.402/92/2006-MC - (30/09/2009) - The Income Tax Act 1961 (the Act) has been amended with effect from 1st October 2009 to provide that any gift-in-kind, being an immovable property or any other property, the value of which exceeds Rs.50,000 (rupees fifty thousand), will become taxable in the hands of the donee, being an individual o...
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S.K. Agarwal (HUF) Vs ITO (ITAT Delhi) -
Rajeshwari Vs Bhunu Ram (Chhattisgarh High Court) -
Arunachala Gounder (Dead) By Lrs. Vs Ponnusamy and Ors. (Supreme Court of India) -