Formation, Management and Taxation of Hindu Undivided Families (HUF)

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Description
As per the Income-tax Act, 1961, a Hindu Undivided Family (HUF) is considered as separate legal entity and assessed to Income-tax as a distinct person and there are separate provisions for HUF for the purpose of computation of tax. The Income-tax Act, 1961, also contains provisions for clubbing of income of a HUF in the hands of a member in certain cases. Businesses in India are largely family oriented which has both positive and negative aspects.
Taxation of HUF being peculiar to this Country draws a lot of interest amongst taxpayers. The prevailing social environment is leading to the melting of large HUFS and a movement towards nuclear families resulting in a need for arranging the affairs especially in family-owned businesses.
India is known for its big happy families; we epitomize the large family structure. As the members are well aware that the Hindu Undivided Family (HUF) is a separate tax entity that is automatically constituted when a marriage takes place. The income of an HUF is subject to tax separately (not in the hands of members) and an HUF is required to obtain a separate Permanent Account Number. An HUF can earn income from all sources, except salary. It may invest in a business and earn profits or earn capital gains. Rental income can be earned on ancestral or other property held by an HUF.
The law of formation and taxation relating to HUF, AOP and BOI is highly complex and has always been the subject-matter of frequent amendments due to the fact that the medium of HUF, AOP and BOI is perceived as a handy tool for tax planning.
This book brings out all the legal aspects of formation and taxation relating to HUF, AOP and BOI under the Income Tax Law. It will be of very great use to the all concerns. It will also be a comprehensive aid to all the concerns for understanding the provisions of HUF, AOP and BOI.
Each chapter provides the introduction, conditions and other requirements to be fulfilled. This book contains all aspects of HUF, AOP and BOI, the detailed scheme of HUF, AOP and BOI, procedural compliances as well as consequences for non-compliance. In the end chapter important format have been provided for a ready use.
Although, every efforts has been made to support every information given in the book with the relevant sections and the rules of law, however, the book should not be construed as an exhaustive statement of law. The relevant provisions of the Income-tax Act and the Income Tax Rules, may be referred to, if necessary.
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Contents
1. Introduction of Hindu Undivided Family (HUF)
2. Hindu Law
3. Whom we can call Hindu
4. Modes of Creation of HUF
5. School of Hindu Law
6. Residential Status of HUF
7. Concept of Coparcenery
8. Doctrine of Blending
9.Karta of HUF
10. Gift by HUF
11. Gift to HUF
12. Assets of HUF [Coparcenary Property]
13. Rule of Succession to Property
14. Income Tax Law relating to Family Settlements Arrangements 15. Hindu Undivided Family after Enactment of
Hindu Succession Act, 1956 TdiMa
16. Hindu Undivided Family & Hindu Adoption and Maintenance Act, 1956 ses ni
17. Return of Income
18. Any Sum Received by an Individual as a member of a Hindu Undivided Family (HUF) is Exempt [Section 10(2)]
19. Income from House Property of HUF
20. Business Income of HUF
21. Capital Gain Income of HUFA to noilulosa to
22. Income from Other Sources for HUF I no
23. Hindu Undivided Family (HUF) & Partnership Firm
24 Clubbing Provisions in Case of HUF
25. HUF: Deductions under Chapter VIA
26. Income treated as Income belonging to HUF
27. Income not treated as Belonging to HUF
28. Computation of Taxable Income of HUF 29. Partition of HUF [Section 171]
30. Partition and Re-Union of HUF
31. Assessment after Partition of a Hindu Undivided Family [Section 171)
32. Recovery of Tax in the case of HUF
33. Hindu Converted to other Religion: HUF Taxation
34. Levy of Penalty on HUF
35. Offences by Hindu Undivided Families [Section 278C]
36. Rates of Income-tax Applicable in Case of HUF
37. Frequently Asked Questions on Hindu Undivided Family (HUF)
38. Landmark Judgements on Hindu Undivided Family
Part: B Association of Persons (AOP)
39. Formation of Association of Persons (AOP)
40. Determination of Residential Status of Association of Persons (AOP)
41. Filing of Return of Income by Association of Persons (AOP)
42. Computation of Taxable Income of Association of Persons (AOP)
43. Method of Computation of Member's Share in Income of Association of Persons (AOP) [Section 67A]
44. Taxation of Members of Association of Persons in the Income of Association of Persons (AOP) [Section 86]
45. Rebate, if any in the Hands of the Members of Association of Persons (AOP) [Section 110]
46. Amendment of Order of Assessment in Case of Completed Assessment [Section 155(2)]
47. Charge of tax where shares of members in Association of Persons (AOP) Unknown, etc. [Section 167B]
48. Assessment of Association of Persons or Body of Individuals or Artificial Juridical Person formed for a Particular event or Purpose [Section 174A]
49. Assessment in case of Dissolution of Association of Persons (AOP) [Section 177]
50. Rates of Tax for Association of Persons (AOPs)
Part: C Body of Individuals (BOI)
51. Introduction - Body of Individuals (BOI)
52. Residential Status of Body of Individuals (BOI)
53. Filing of Return of Income by Body of Individuals (BOI)
54. Computation of Income of Body of Individuals (BOI)
55. Computation of Taxable Income of Members of a Body of Individuals [Section 67A]
56. Taxation of Members of Body of Individuals in the Income of Body of Individuals (BOI) [Section 86]
57. Taxation of Members of Body of Individuals in the Income of Body of Individuals (BOI) [Section 110]
58. Amendment of Order of Assessment in Case of Completed Assessment [Section 155(2)]
59. Charge of Tax Where Shares of Members in Body of Individuals (BOI) Unknown etc. [Section 167B]
60. Assessment of Body of Individuals formed for a Particular Event or Purpose [Section 174A]
61. Tax Rate for Body of Individuals (BOls)
62. Taxation of Joint Venture
63. Specimen of Various Useful Format
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Author Details
Ram Dutt Sharma got his post-graduation (M.Sc.) from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and presently working as Income Tax Officer in Faridabad. He worked at various stations of North-West Region of Income Tax Department. He has wide experience of all wings of Income Tax Department such as assessment unit, Special Range, TDS Wing, Investigation Wing, Intelligence and Criminal Investigation etc. He has been contributing articles and addressing on topics relating to Income Tax at Direct Tax, Regional Training Institute, Chandigarh. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations. He is the author of number of books on direct taxes, namely Computation of income from salary under income tax law with tax planning, Computation of income from house property, Formation and Management of Charitable mad Religious Trust, Educational and Medical Institutions under income- tax law, Taxation of Non-Resident Indians under income-tax law etc. which have been highly appreciated by the readers.