Hindu Undivided Family | Civil Law for Judiciary Exams PDF Download

The Hindu Undivided Family (HUF)

A Hindu Undivided Family (HUF) is a unique family structure recognized in India, primarily among Hindus, but also applicable to Buddhists, Jains, and Sikhs for tax purposes. Below are the key points regarding HUF:

•  Automatic Creation:  HUF comes into existence automatically within a Hindu family, without the need for a contract. It comprises a Karta (the eldest male member) and coparceners (descendants).
•  Role of Karta:  The Karta manages the family's affairs and is responsible for obtaining a Permanent Account Number (PAN) and opening a bank account in the HUF's name for tax purposes.
•  Taxation:  HUF is considered a separate entity under the Income Tax Act of 1961 and is taxed as such. The tax slab rates applicable to individual income tax assessees also apply to HUFs.
•  Legal Framework:  HUF is influenced by Hindu law and is related to the Hindu Succession Act (1956) and the Hindu Marriage Act (1955). Members are lineal descendants of a common ancestor and include wives and unmarried daughters living together.
•  Joint Family vs. HUF:  The terms "Joint Family" and "Hindu Undivided Family" are synonymous. A HUF cannot be created by the act of parties, except in cases of reunion or adoption.
•  Dynamic Nature:  The size of a HUF changes with the birth of male members and the death of members. Females enter and exit the HUF through marriage.
•  Dayabhaga and Mitakshara Schools:  HUF is classified into Dayabhaga (prevalent in Bengal and Assam) and Mitakshara (followed in the rest of India) schools, which differ in the principles of property allocation and coparcenary rights.
•  Dayabhaga School:  In this school, coparceners do not acquire interest by birth. Their rights arise upon the father's death. The father has full control over the property during his lifetime.
•  Mitakshara School:  Coparceners acquire rights by birth and can demand partition. The property is not physically separated during a partition. There are four classifications under this school: Dravidian, Maharashtra/Bombay, Banaras, and Mithila.
•  Important Judgements:  Court cases, such as Attorney General of Ceylon v. Arunachalam Chettiar, have clarified the dynamics of joint family and coparceners within the Mitakshara School.

Differences between Dayabhaga and Mitakshara Schools 

Dayabhaga School

• Geographical Area: Predominantly in Bengal and Assam.
• Coparcenary Rights: No coparcenary rights by birth. Sons acquire rights only upon the father's death.
• Father's Control: The father has full control over the property during his lifetime.
• Property Division: Property division occurs only after the father's death.
• Female Coparceners: Coparceners can be both males and females.

Mitakshara School

• Geographical Area: Prevails in the rest of India, except Bengal and Assam.
• Coparcenary Rights: Sons have coparcenary rights by birth and can demand partition.
• Father's Control: The father has control over the property, but sons have rights from birth.
• Property Division: Property can be divided at any time, and sons have exclusive rights by birth.
• Female Coparceners: Female members may have different rights and roles compared to males.