India is known for its big happy families, we epitomise the large family structure. The Hindu Undivided Family (HUF) is a separate tax entity that is automatically constituted when a marriage takes place. Unlike what the name suggests, it is also applicable to Buddhist, Jain or Sikh families, besides Hindus. The income of an HUF is subject to tax separately (not in the hands of members) and an HUF is required to obtain a separate Permanent Account Number. An HUF can earn income from all sources, except salary. It may invest in a business and earn profits or earn capital gains. Rental income can be earned on ancestral or other property held by an HUF. Under the direct tax laws practiced in India, ‘partnership’ and ‘HUF’ are different
taxable entities. In other words, these two are ‘persons’ within the meaning of tax laws for the purpose of levy and assessment of income tax.
This book titled “Partnership & HUF: A Practitioners’ Perspective” has been developed with the prime objective of serving as a quick refresher cum knowledge builder for all those, who are involved in formation, management and taxation of these entities in India.This book, though small in size, is a unique publication containing 301 Frequently Asked Questions (FAQs) from Practitioners’ Viewpoint. This book has not only covered important taxing issues, related to these taxable entities, but also tried answers to queries and problems pertaining to the Practitioners & HUF.
Contents at A Glance
Partnership & HUF: A Practitioners’ Perspective
(Containing 301 Frequently Asked Questions from Practitioners’ Viewpoint)
Part-1: Partnership: A Practitioners’ Perspective (FAQ 1-217) ...................... 1
Part-2: HUF: A Practitioners’ Perspective (FAQ 218-301) ......................... 125