But a new law ‘MITAKSHARA LAW’ differs this system as the property can be divided in tenure of father alive.
The ‘Dhayabhaga System is in West Bengal and eastern seven states. Rest of the country is governed by ‘Mitakshara law’.
The Indian government has amended these laws and bring inline one law which is called’ HINDU UNDIVDED FAMILY’ law or ‘HINDU SUCESSION ACT 1956.
Moreover government has amended some changes in this law on 9th September, 2005.The amendments are as follows.
1- The daughter could also be a coparcener like the sons of the HUF.
2- She also continues to be a coparcener after her marriage of that family whether she also will be a member of HUF of her husband.
3- Coparcener is the person who has the right to demand the share of the property of family if he/she wants to part away with the family with his/her share.
4- The degree of the coparcener limited to four degree and not all the members of the family are coparcener which is as follows.
- First time holder of the property
- Sons & Daughter
- Great Grandsons
5- For creating the HUF one need to get married, as soon as one take seven circles(SAATH PHERE) the HUF created. There is no need to have child or children for creating the HUF.
6- No unmarried man can’t create a HUF. One should marry first to create HUF. The Hindu is always a member of HUF as soon as he/she takes birth of his family. But to create own HUF one must marry first.
7- The KARTA which is the Hindi word means ‘DOER’ has the immense power of all the affairs of the family more than any of the coparcener. Usually the KARTA is the father of the family who has the right to do all the things for the family.
8- The female could also be a KARTA as the amended HINDU SUCESSION ACT in 2005 when the father misfortunately dies and she has no brother. In that condition the daughter or the mother can be the KARTA.
9- In HUF there could be all the females’ members also when the husband dies and she has no sons.
10- The HUF can’t be a partner of the firm as the HUF is not a person whereas the KARTA of HUF can be a partner of the firm.
11- HUF can pay remuneration to the KARTA of family for the interest and expenditure to run the family business. in Jugal KishoreBaldev Sahai v. CIT 63 ITR 238 (SC), the Supreme Court held that "ifa remuneration is paid to a Karta of the family under a valid agreement which is bona fide in the interest of and expedient for the business of the family and the payment is genuine and not excessive, such a remuneration must be held to be an expenditure laid out wholly and exclusively, for the purpose of the business and must be allowed as an expenditure under section 10(2)(xv)[corresponding to the present-day Section 37(1)] of the Act".
12- Partition of HUF: - Partition of HUF is also a big question. The Income Tax Law doesn’t allow to partial partition of the property of HUF. Reason is that people sometime do partial partition of the family only to bring more income tax files and to decrease their tax liability. So if a HUF is partitioned it should be fully partition like each and every assets as well as liability.
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