Formation of huf

This query is : Resolved

sanjay shaw (Querist)
Follow

20 August 2012 Whether a Bengali can Form HUF who is covered under Mirtaksara Law of College.

Is there any legal restriction under Income Tax Act

Taxguy

Taxguy (Expert)
Follow

20 August 2012 For Mitaksra there is no impediment, what are looking for seems to me as Dayabaga, which covers people of Bengal region.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
Follow

20 August 2012 Dear Sanjay Shaw,

Bengalis are Covered Under Dayabhaga Law of College Not Mitaksra.

A HUF is a separate entity for taxation under the provisions of S.2 (31) of the Income Tax Act, 1961. This is in addition to an individual as a separate taxable entity. This indicates that a person may be assessed in two different capacities- as an individual and as a Karta of his HUF.

So Regarding Your Query, There is No Problem Under Income Tax Act to Form HUF by Bengalis.

You Can Go Ahead Sanjay Shaw.

Regards,
CA Ayush Agrawal
ayushagrawal@rediffmail.com

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
Follow

20 August 2012 The difference between Mitakshara and Dayabhaga are :

Mitakshara

1. The son gets a right by birth in the joint family property. In case he is adult, he can demand partition even during the life time of his father.

2. He has a say and can prevent his father from unauthorised alienation of ancestral properly.

3. A coparcener has no right to alienate his share in the joint family property. On his death without male issue, his interest survives to his brother.

4. The widow of the deceased coparcener cannot enforce partition. She has a right of maintenance.

5. The essence of a coparcenary is unity of ownership.

Dayabhaga

1. He has no right in the joint family property so long as his father is alive.

2. The father is absolute owner of the property and can deal with it the way he likes.

3. Each adult member male or female has a right to demand partition and can alienate his/her interest and on death his/her share will be inherited by his her heirs.

4. The widow becomes a coparcener with her husband's brother and can demand partition.

5. The essence is unity of possession and not ownership.

Message likes : 1 times

sanjay shaw

sanjay shaw (Querist)
Follow

27 August 2012 Thaks Ayush

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now