A Hindu Undivided Family (HUF) is known as a joint Hindu Family under the Hindu Law, and comprises all persons lineally descended from a common ancestor and living under a common roof and joint in estate, food and worship.
A. HUF GLOSSARY
1. Karta
As the eldest male in the family, he is the CEO of the HUF, invests and spends on its behalf and is responsible for maintaining accounts.
2. Co-parceners
All male lineal descendants of the karta and his daughters are co-parceners in the HUF, have equal rights in the HUF and can demand its partition.
3. Members
Wives of karta and male co-parceners in the HUF, including granddaughters, are its members, have a right over the property but cannot demand partition.
4. Dayabhaga
Under this system, the father is the sole and exclusive owner of the family property, no member can enforce the partition of the HUF so long as he is alive, and this system is followed in West Bengal and Assam.
5. Mitakshara
Under this system, the property belongs to the HUF, not to an individual, can, therefore, be partitioned even during the lifetime of the karta, and the rest of India (except Kerala) follows this system.
6. Family hotchpot
The term is used to define the corpus of the HUF, where once an asset enters the hotchpot, it can only be withdrawn at the time of the final partition of the HUF.
7. Partition
HUF can be partitioned by dividing the assets among the co-parceners, according to the Hindu Succession Act, and the partition of the HUF assets does not attract any capital gains tax.
B. HINDU COPARCENARY
A coparcenary is purely a creature of law, comprises only those persons who acquire an interest in the joint coparcenary property by birth, and includes sons, daughters, grandsons and great grandsons who are holders of the joint family property for the time being.
A. HUF GLOSSARY
1. Karta
As the eldest male in the family, he is the CEO of the HUF, invests and spends on its behalf and is responsible for maintaining accounts.
2. Co-parceners
All male lineal descendants of the karta and his daughters are co-parceners in the HUF, have equal rights in the HUF and can demand its partition.
3. Members
Wives of karta and male co-parceners in the HUF, including granddaughters, are its members, have a right over the property but cannot demand partition.
4. Dayabhaga
Under this system, the father is the sole and exclusive owner of the family property, no member can enforce the partition of the HUF so long as he is alive, and this system is followed in West Bengal and Assam.
5. Mitakshara
Under this system, the property belongs to the HUF, not to an individual, can, therefore, be partitioned even during the lifetime of the karta, and the rest of India (except Kerala) follows this system.
6. Family hotchpot
The term is used to define the corpus of the HUF, where once an asset enters the hotchpot, it can only be withdrawn at the time of the final partition of the HUF.
7. Partition
HUF can be partitioned by dividing the assets among the co-parceners, according to the Hindu Succession Act, and the partition of the HUF assets does not attract any capital gains tax.
B. HINDU COPARCENARY
A coparcenary is purely a creature of law, comprises only those persons who acquire an interest in the joint coparcenary property by birth, and includes sons, daughters, grandsons and great grandsons who are holders of the joint family property for the time being.