It refers to a form of business organization which is owned and carried on jointly by the members of the Hindu Undivided Family (HUF). It is also known as Hindu Undivided Family Business.
What is joint Hindu family form of business organisation?
The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF) , where the family members of three successive generations own the business jointly. … All of them have equal ownership right over the properties of the business.
What do you mean by Hindu joint family?
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 is joint Hindu family business explain its features?
Joint Hindu Family Firm is created by the operation of law. It does not have any separate and distinct legal entity from that of its members. … The membership in this form of business organisation can be acquired only by birth or by marriage to a male person who is already a member of Joint Hindu Family.
What are the features of joint Hindu family business class 11?
Characteristics of a Joint Hindu Family Business:
- The main characteristics of Joint Hindu Family Business are given below:
- Governed by Hindu Law:
- Membership by Birth:
- Permanent Existence:
- Implied Authority of Karta:
- Minor also a Partner:
What is the disadvantage of joint Hindu family business?
Demerits of Joint Hindu Family Business: Limited Resources: The capital is limited only up to the resources of one family. No outside members other than family members can be introduced to the HUF. Thus the joint Hindu family business faces the problem of limited capital as it depends mainly on ancestral property.
What are the advantages of joint Hindu family business?
Merits of Joint Hindu Family Firm:
- Stability: The existence of the Joint Hindu Family firm does not come to an end by the death, insanity, or bankruptcy of any coparcener.
- Management: The organisation, management, and control of the business is vested in the karta of the family. …
- Liability: …
- Membership: …
- Credit worthiness:
What is the importance of joint family?
Joint family helps foster love within a family so that people can be closer to each other for the good of the family. It also helps foster unity as living together means that they have to work together with the goal of a sustainable coexistence.
What are the disadvantages of joint family?
5 Disadvantages of Living in a Joint Family
- Privacy is Compromised. Lack of privacy is a common complaint among people who live in a joint family. …
- A small Decision Runs by Everyone. …
- Financial Responsibility. …
- Interference in Parenting. …
- Woes of a Common Kitchen.
Who comes under Hindu undivided family?
Hindu Undivided Family (HUF) consists of all persons directly descended from a common ancestor, and also the wives and daughters of the male descendants. For instance, you and your spouse along with your two children can create an HUF and get certain relaxation in computation of taxes.
What are the two conditions for existence of joint Hindu family business?
For formation of the business, there should be at least two members are present at the time of formation and a hereditary property should be formed for Hindu Joint Family Business. Their membership is not created by an agreement in among individuals.
What is the main cause of decline in joint Hindu family business?
Conflict or family quarrel has caused the breakdown of joint family system. Conflicts regarding family property, its income and expenditure, unequal distribution of work at home and personal clashes between women lead to the break-up of joint families.
Who becomes Karta in joint Hindu family?
The senior-most male member of the Joint Hindu Family is considered as the Karta of family and he has infinite powers and control over the business. But the main drawback is the unlimited liability associated with the position i.e. his personal assets can be used to payoff the debts, if need arises.
Is Reliance joint Hindu family?
Reliance Industries Limited is a Joint Hindu Family business form of business organisation. … This company is engaged in businesses like textiles, energy, petrochemicals, telecommunications & retail. Son of Dhirubhai Ambani, Mukesh Ambani is the present Karta of the company.
Can there be joint Hindu family business outside India?
According to Hindu Succession Act Joint Hindu Family Business can only be in India…not in any other country. No.. joint hindu family only exist in India…..