Table of Contents
Can a Muslim start HUF?
No, Muslim families cannot form HUF. Only Hindu and Hindu dissidents can form HUF.
Can Muslims do joint Hindu family business?
The word Hindu here has been used here in liberal way and includes the person of Jain, Sikh and Buddha religion. So a Muslim, Pareses, Jews and Christian can not have an HUF. An HUF is creation of law and can not be created by acts of the persons.
Who can start an HUF?
One person cannot form HUF, it can only be formed by a family. A HUF is automatically created at the time of marriage. HUF consists of a common ancestor and all of his lineal descendants, including their wives and unmarried daughters. Hindus, Buddhists, Jains and Sikhs can form HUFs.
How do I start a HUF business?
How to create HUF
- Step 1: Create HUF Deed. The 1st Step in creating a HUF is to create the HUF Deed.
- Step 2: Apply for HUF PAN Card. As a HUF is treated as a separate entity different from its members, a HUF is required to apply for a separate PAN Card.
- Step 3: Open HUF Bank Account.
Can Sikh have HUF?
1. The Hindus, Sikhs, Buddhists and Jains are eligible to form an HUF. The HUF includes all lineal descendants of a family, including the husband, wife and children.
Do minorities pay taxes in India?
According to section 10 (26) of the Income-Tax Act, “A member of a Scheduled Tribe, as defined under clause 25 of Article 366 of the Constitution, who resides in the states of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura is exempt from paying income-tax on any income which accrues or arises to him in these …
Can I open HUF account?
HUF Demat and Trading accounts can be opened with any stockbroker in India. Investing in the name of the family. Tax benefits as HUF is considered as a separate entity. For example, say both the husband and wife already have taxable income, then they can create HUF and earn an additional Rs 2.5 lakh tax-free income.
Can HUF buy car?
Who is eligible for a car loan? A salaried individual, self-employed whether in business or profession are eligible to apply. One can even apply on the name of the HUF, firm, company, etc. to avail of the depreciation (a deductible expense) benefit, under the Income-tax Act.
Can HUF have professional income?
Hello, Even if you create a HUF, professional income, and the rental income would be taxable in your individuals’ name only. And also a HUF cannot have salary income. Since professional income would depend upon your personal skills & abilities and the rental income would be charged in individuals hands as per sec.
Why Muslims Cannot form HUF?
However, even Buddhists, Jains and Sikhs are regarded as Hindus, and can, therefore, set up HUFs. The concept of an HUF has basically evolved from ancient Hindu law. But unfortunately, Muslims are not allowed to form HUF as muslims are not covered under the Hindu laws.
Can HUF buy a car?
Can a Muslim have a HUF?
However, even Buddhists, Jains and Sikhs are regarded as Hindus, and can, therefore, set up HUFs. The concept of an HUF has basically evolved from ancient Hindu law. But unfortunately, Muslims are not allowed to form HUF as muslims are not covered under the Hindu laws.
What is Joint Hindu family business (HUF)?
The Joint Hindu Family Business or the Hindu Undivided Family (HUF) is a unique type of business entity. It is governed and dictated by the Hindu Law, which is one of the several religious laws prevalent in India.
What is the origin of the concept of HUF?
The concept of an HUF has basically evolved from ancient Hindu law. But unfortunately, Muslims are not allowed to form HUF as muslims are not covered under the Hindu laws. Hope this helps. Study economics for business with MIT.
Can minor members be a part of the HUF?
So in this case, even minor members will be a part of the HUF. But they will enjoy only the benefits of the organisation. A Hindu Undivided family is comprised of family members running a business.