The unity among its members is a great strength to face and remove any obstacles with sheer courage. Within its fold no outsider, except by adoption, can be admitted by agreement or otherwise. The joint hindu family business is a distinct form of organization peculiar to india. Find out the essential characteristics of joint hindu family. Joint hindu family firm is created by the operation of law.
In joint hindu family business, only males can be copartners and not females under the mitakshara law. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Sole proprietorship, one person company, joint hindu family firm, partnership firm, joint stock company, cooperative society. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Karta represents the family and acts on its behalf. It often creates parasites who love to feed on others income. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. The expression hindu undvided family in the act is used in the sense in which a hindu joint family is understood in the personal laws of hindus. It is not formed by any agreement like partnership firm. The business does not need any agreement as membership is by birth. In hindu joint family, the senior most male ascendant is the head of the family and is called the karta. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. It is obvious that a nonhindu family cannot get this status. Joint hindu family cannot be formed or created by any legal contract or signing an agreement because this organization came into existence by the operation of the hindu law.
This is special form of business organization, which now exists only in india. Joint hindu family is a unit considers by law as separate entity for the purpose of taxation, but it is not considered as separate legal person. It means only one person or an individual is the owner of the business. When joint hindu family conducts business, inherited by it as per hindu law, it is called a joint hindu family firm. Joint hindu family business is the oldest and specific form of business organization found only in india. Cbse class 11 business studies notes aglasem schools. Chapter 4, joint hindu family business and cooperative society. A hindu joint family or hindu undivided family huf or a joint family is an extended family arrangement prevalent among hindus of the indian subcontinent, consisting of many generations living under the same roof. Joint hindu family business is a distinct type of organisation which is unique to india. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties. Joint hindu family business is a distinct type of organization that is unique in india. The joint family system is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same home, all bound by the common relationship. It is an integral part and the most characteristic way of. Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor.
In every society and at every stage of development we. Joint hindu family business is a different type of organization, which is found only in india. Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. The formation of a joint hindu family business requires at least two members in the family and ancestral property to be inherited by them. It is a unit and in all affairs it is represented by its karta or head. Hindu joint family system mitakshara joint family the mitakshara joint family is a unique contribution of hindu jurisprudence which has no parallel in any ancient or modern system of law. A patrilineal joint family consists of an older man and his wife, his sons and unmarried daughters, his sons wives and. So, a parsi, muslim or christian cannot create a huf. A business, which continues from one generation to another generation is known as joint hindu family business or firm. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer.
Introduction joint hindu family business is a form of commercial organization where a business is owned by the members of a hindu family living jointly. It basically refers to an extended family set up characteristic of the indians. In other words, when the business carries on from one generation to another in a hindu family it. The term hindu undivided family has not been defined under the income tax act. This animation introduces the learner to various features of a joint hindu family, merits and limitations of the same. Nevertheless, this type of business is losing its ground with the gradual decline in. Partition means ending the status of joint hindu family. Its origin can be traced to the ancient partriarchal system where the patriarch or the head of the family was the unquestioned ruler, laying down norms for the members of his family to follow. All the male members are blood relatives and all the women are either mothers, wives, unmarried daughters, or widowed relatives, all bound by the common sapinda relationship. Wherever, there is hindu undivided family, there is the scope of joint hindu family business. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. The operation of law creates a joint hindu family business.
Karta of a family hindu law karta means manager of joint family and joint family properties. What are the different classes of property under hindu law. Essays and paragraphs, indian society on march 18, 2019 by h patra. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. It is made up of multiple family generations all of whom come together under one roof and bound by the same. Even within india its existence is restricted to only certain parts of the country. Entrepreneurial process idea generation, feasibility study. Joint hindu family business free download pdf kupdf. The joint hindu family business is controlled under the hindu law instead of the. In this form of business ownership, all members of a hindu undivided family do business jointly under the. Under hindu law when the joint family status comes to an end there is division of property among members and joint ownership of property comes to an end. The business of joint hindu family is controlled under the hindu law instead of partnership act. Solution hindu joint family business is a structure of commercial association where a business is possessed via the members of a hindu family living jointly. Basic considerations in setting up a business enterprise.
Joint hindu family business, though is an enlarged form of sole trading concern but it enjoys stability. It does not have any separate and distinct legal entity from that of its members. Joint hindu family business definition, examples, diagrams. It is voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership. The success of joint hindu family business is mostly dependent upon the efficiency of the karta and the mutual understanding between the coparceners. It has been a fundamental aspect of the life of hindus. In this form of business ownership, all members of an undivided hindu family do business together under the control of the head of the family who is known as the karta. It is given due recognition by the income tax act, 1961, and by the joint hindu succession act, 1956, but it lacks legal status.
The joint hindu family business is a distinct form of organisation peculiar to india. Introduction family is one of the universal and permanent institutions of mankind. Finally, the spirit of oneness prevails in a joint family system. Joint hindu family business the business carried out by the male members of a hindu undivided family is known as joint hindu family business. Let us learn about this form of organisation and its unique features. The head of the family is the head of the business also. Joint hindu family or hindu undivided family huf is an exclusive feature of hindu law. Partition of the huf property can be of two types under the hindu law i. But under dayabhaga law, both males and females can be members under certain conditions. The business of joint hindu family is controlled under the hindu law instead of partnership. All business affairs are dealt with by the senior most male member of the hindu family. The business of joint hindu family is controlled under. Why is joint hindu family business established in india.
It has no legal entity distinct and separate from that of the members who constitute it. Before we understand about the liability of a joint hindu family business lets understand who is the karta. Hindu joint family under mitakshara law the hindu joint family is a normal condition of the hindu society. The karta is the eldest male member of a joint hindu. There are two conditions for existence of joint hindu family business, these are. Nowhere else in the world is this a legal form of business entity. Partition of property in hindu undivided family property. Disadvantages of joint hindu family business 1 limited. Borrowers have requested the bank to finance the aforesaid joint family business of the firm and to grant to the firm all or some or any of the credit facilities that may be agreed upon from time to time between the bank and the joint hindu family firm for sums not exceeding at any one time in the aggregate the sum of rs.
When the business continues from one generation to another in a hindu family it becomes a joint hindu family business. Hindu undivided family business it is a precise kind of business structure found only in india. Hindu undivided family is purely a creature of law and cannot be created by an act of parties except in case of adoption and reunion. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of. Thus, the business organisation in which a single person owns, manages. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india.
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