This form of organisation is only found in India. It is one of the oldest forms of business organisation in India and is governed by two systems. These are the Dayabhaga and the Mitakashara. With Mitakashara being the more prevalent across India.
What are the types of joint Hindu family business?
Characteristics of a Joint Hindu Family Business:
- Governed by Hindu Law: The business of the Joint Hindu Family is controlled and managed under the Hindu law.
- Management: …
- Membership by Birth: …
- Liability: …
- Permanent Existence: …
- Implied Authority of Karta: …
- Minor also a Partner: …
- Dissolution:
What are the two system of joint Hindu family?
There are two systems which govern membership in the family business, viz., Dayabhaga and Mitakashara systems. Dayabhaga system prevails in West Bengal and Assam and allows both the male and female members of the family to be co-parceners.
How many joints are there in Hindu family business?
Systems which are used in a Joint Hindu Family Business
There are four sub-schools – Benares, Mithila, Maharashtra or Bombay, and Dravida or Madras school. The application of schools of Mitakshara is regionwise.
What are the two important features of an HUF?
Features of a HUF
- Formation: To begin a Hindu Undivided Family there must be a minimum of two related family members. …
- Liability: The liability of all the various co-parceners is only up to their share of the property or business. …
- Control: The entire control of the entity lies with the Karta.
What are the joint Hindu family business in India?
Joint Hindu family business is a specific form of business organisation found only in India. It is one of the oldest forms of business organisation in the country. It refers to a form of organisation wherein the business is owned and carried on by the members of the Hindu Undivided Family (HUF).
Is Haldiram a joint Hindu family business?
Answer: India based Business house, Haldiram, is an example of Joint Hindu family business, the history of company begins from Bikaner in the year 1937 and from there Haldiram has flourished well from a small corner shop to a company of worth 1500 Crores.
Which type of family is called joint family?
The joint family is an extension of the nuclear family (parents and dependent children), and it typically grows when children of one sex do not leave their parents’ home at marriage but bring their spouses to live with them.
What is Hindu joint family system?
A Hindu undivided family or HUF is a legal term related to the Hindu Marriage Act. … In the case of Surjit Lal Chhabra 101 ITR 776 SC, joint family and undivided family are synonymous: “A joint Hindu family consists of persons lineally descended from a common ancestor and includes their wives and unmarried daughters.
What are the features of joint Hindu family business?
The main characteristics of Joint Hindu Family Business are given below:
- Governed by Hindu Law: The business of the Joint Hindu Family is controlled and managed under the Hindu law. …
- Management: …
- Membership by Birth: …
- Liability: …
- Permanent Existence: …
- Implied Authority of Karta: …
- Minor also a Partner: …
- Dissolution:
Who is the head of joint Hindu family business?
The head of a joint Hindu family business is called the Karta. Karta is the eldest male member of a joint Hindu family who is responsible for the control and management of the joint Hindu family business and has unlimited liability. Hence, the correct answer is option Karta.
What do you mean by joint Hindu family business how is it different from that of partnership?
A partnership firm is controlled by two or more persons called ‘Partners’. In Joint Hindu Family ‘Firm, the Joint Hindu Family conducts business according to Hindu Laws. 2. Number of members. A minimum of two members are needed for starting a business.
Who is Karta in joint Hindu family business?
(b) The joint Hindu family business is controlled by the head of the family who is the eldest member and is called Karta. The karta has unlimited liability while the liability of all other members is limited to their share of co-parcenery property of the business.
What type of business HUF can do?
It can engage in business, investing in real estate and market linked investment options such as shares, earn income through rent etc. The HUF should file for ITR (Income Tax Returns) and income earned would be taxed as per the slabs.
What kind of members the business of Hindu undivided family consists of?
An HUF consists of the ‘karta’, who is typically the eldest person or head of the family, while other family members are coparceners. The ‘karta’ manages the day-to-day affairs of the HUF. Children are coparceners of their father’s HUF.
What is the role of Karta in joint Hindu family business?
Responsibilities of Karta:
The most basic duty of a Karta is to provide food, shelter, clothing, etc. To the members of the joint family. His many responsibilities include: Maintenance: all coparceners, from the head of the family to the younger members, have the intrinsic right to maintenance.