The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. An huf comprises all the people who have lineally descended from a common ancestor and includes wives and unmarried daughters. All the male members are blood relative and all women like mothers, wife, sister, unmarried daughter and widow relatives all bound the common relationships. All business affairs are dealt with by the senior most male member of the hindu family. Jan 21, 2020 the joint hindu family business is a distinct form of organization peculiar to india. A joint hindu family is normally joint in worshipkitchenbusiness. These businesses are managed by all members of a joint hindu family. In matters related to property laws, the term hindu undivided family huf if often used.
When all the members of a hindu undivided family run a business under the control and guide of karta the seniormost member of the family, such an association is joint hindu family business. Income derived from business operations carried out in. Davis, the joint family consists of males having a common male ancestor female offspring not yet married and women brought into the group by marriage. Huf consists of karta of a huf is the senior most male member of the family and in financial terms he can also be called manager of the family all male adults in the family are called coparceners others member. Features merits introduction limitations examples 3. He is a person with limited power but he possess such vast power with in ambit of joint. Joint hindu family business is a type of business organization which is found only in india.
Shifting beps project, india has also ratified the. Jan 20, 2018 joint hindu family business class 11 1. When joint hindu family carries on a particular business from one generation to another generation called as joint hindu family business. Sep 22, 2016 the legal business which is carried by them known as joint hindu family business 18. A joint hindu family is normally joint in worshipkitchen business. It often creates parasites who love to feed on others income. Joint hindu family business, though is an enlarged form of sole trading concern but it enjoys stability.
The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Joint hindu family business family marriage free 30. So the life of a company is in no way related to the life of its members. It is given due recognition by the income tax act, 1961, and by the joint hindu succession act, 1956, but it lacks legal status. Retain full control over your data, rely on full privacy and confidentiality and benefit from cutting edge security technology. Oct 21, 20 joint family is an empowered form of family. Jul 29, 2017 cbse class xi business studies forms of business organisation joint hindu family business 11th class chapter 2nd part1. Joint hindu family business an affectionate business february 28, 2018 organization of commerce 2 4. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. This is a presentation that i had made on joint hindu family business hope people find it useful. Without sharing the family business to external parties and using the family business profit for the well being of particular family.
However, with urbanization and economic development, india has witnessed a break up of traditional joint family into more nuclearlike families, and the traditional joint family in india accounted for a small number of indian households. A hindu undivided family or huf is a legal term related to the hindu marriage act. It does not have any separate and distinct legal entity from that of its members. Sep 27, 2017 in matters related to property laws, the term hindu undivided family huf if often used. As the name suggests, it is type of organization in which all the members of hindu undivided family manage and control the business with the direction of head of the family. A joint venture jv is a business agreement in which the parties agree to develop, for a. Disadvantages of joint hindu family business 1 limited.
Joint hindu family business an affectionate business. The business of joint hindu family is controlled under the hindu law instead. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. This joint family system is a peculiar characteristic of the indian social life.
Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. What are the features of a joint hindu family business. Another form of business which is owned by the members of a joint hindu family and in which the family possesses some inherited property. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. The joint hindu family business is a distinct form of organisation peculiar to india. For the indian students of sociology, the study of the indian family system deserves special attention, not only because they are born in indian families but also for here the family system differs in. Hindu succession act areas of law law library advocatekhoj. The joint business is an extended family agreement at common place through out indian subcontinent, particularly in india, subsisting of many generations living in the same house. Joint hindu family business free download as word doc. Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor. Let us learn about this form of organisation and its unique features. Karta of a hindu joint family powers and responsibilities. Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration.
Joint hindu family business meaning, examples and conclusion. The karta of the hindu joint family is liable to maintain all the members of the joint family. The fundamental concept of such a hindu joint family where there is a common male ancestor with his lineal descendants in the male line. Joint hindu family business class 11 linkedin slideshare. In this lesson let us find out more about these types of business organisations. Well, any person born into the family boy or girl up to the next coming three generations is a part of. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm.
It also helps foster unity as living together means that they have to work together with the goal of a sustainable coexistence. The joint stock company is born out of the law, so the only way for the company to end is by the functioning of law. Joint hindu family firm is created by the operation of law. The joint hindu family business is controlled under the hindu law instead of the. Hindu undivided family business it is a precise kind of business structure found only in india. A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. The operation of law creates a joint hindu family business. The unity among its members is a great strength to face and remove any obstacles with sheer courage. A hindu joint family has no legal entity distinct and separate from that of the members who constitute it. The karta is the eldest male member of a joint hindu. Nowhere else in the world is this a legal form of business entity. The joint hindu family business is a distinct form of organization peculiar to india.
Improving entrepreneurship and family business effectiveness through research and sharing of best practices, and familybusiness. There is no office or institution in any other system of the world can be compared with it. Joint hindu family business project aims and objective, joint hindu family is a process of business or a distinct form of organization. Aug 22, 2010 wherever, there is hindu undivided family, there is the scope of joint hindu family business. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. Joint hindu family an affectionate business project. Study of your project now, for depth knowledge of this business, you can visit a joint hindu family business. Cbse class xi business studies forms of business organisation joint hindu family business 11th class chapter 2nd part1. All the members of the joint hindu family have a right to maintenance and residence. Finally, the spirit of oneness prevails in a joint family system. The joint hindu family system has been around in south asia for centuries. In this blog post, shambhavi kumar, a student of jindal global law school, sonipat, analyzes the powers and responsibilities of the karta of a hindu joint family.
Jun 03, 2017 a joint hindu family is normally joint in worshipkitchen business. What are the aims and objectives of a joint hindu family. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of. Members or shareholders of a company keep changing, but this does not affect the companys life. Find out the essential characteristics of joint hindu family. Hindu joint family is a unit and in all matters it is represented by its karta. Therefore, it cannot undertake big and risky business. If the karta is unable to maintain them he can be sued for the same and the member can claim their arrears of maintenance. It is one of the oldest forms of business organization in the country. Apart from hindus, huf laws also cover jains, sikhs and buddhists. Joint family helps foster love within a family so that people can be closer to each other for the good of the family. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. The legal business which is carried by them known as joint hindu family business 18.
Joint hindu family business has generally limited financial and managerial resource. For the indian students of sociology, the study of the indian family system deserves special attention, not only because they are born in indian families but also for here the family system differs in material respects from the western family system. It preserves family values and business value within the family ensuring better decision making and preparedness for the next generation to come. A joint family may encompass countless generations.
Chapter 4, joint hindu family business and cooperative society. Joint hindu family business project aims and objective. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. There is always a lack of motivation among the members to work hard. You can ask them about the number of members in the business, why they opted for joint hindu family business. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization. Wherever, there is hindu undivided family, there is the scope of joint hindu family business. In the entire hindu joint family karta or manager occupies a very important position.
It is a specific form of business organization found only in india. Joint hindu family business free download pdf kupdf. Karta means manager of joint family and joint family properties. It is not practised or followed elsewhere in the world. A joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. Joint hindu family business is a different type of organization, which is found only in india. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity.
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