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Concept of Hindu Undivided Family (HUF)

Concept of HUF The term 'Hindu Undivided Family' has not been defined under the Income Tax Act. It is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. This means membership of a HUF does not come from a contract but from status of the person in such families. A HUF cannot be formed by a group of people who do not constitute a family. Lineal descendents with a common ancestor is a must Type of HUF There are two types of HUF Mritakshra sampraday Dayabhag sampraday Dayabhag Sampraday (दयाभाग संप्रदाय) The dayabhag law applies in West bengal and Assam . According to this law, the son doesn't acquired any right by birth in the ancestral property. The son's right arise for the first time on father death. All properties thus, devolve by inheritance and not by survivorship. Under this school of law, the coparcenary is formed only on death of the father. Fem

Diffrence between Previous year & Assessment years

Assessment Year [Sec. - 2 (9)] Meaning and Definition  Assessment year refers to a year in which financial year is assessed. Assessment year  is the evaluation year of the financial year. Or  Assessment year is the tax calculation year. Explanation If a person "A" earned income in financial year 2016-17, then he will pay income tax in assessment year 2017-18. Definition:- Assessment year may be defined as a year in which the income of the previous year is to be assessed. Previous year [Sec. -3] Meaning and Definition Previous year refers to the year in which income is generated. The income of the previous year is taxed in the immediately following assessment year. Definition:- Previous Year means financial year, which is immediately preceding  the assessment years.   Introduction to Income tax Act 1964 Sr. No.  Subjects Name  Links 1 Previous years & assessment years Click Here>>> 2 Assessee Click Here>>&

What is Capital ? ( Meaning, Definition and Type of Capital)

Capital is an investment which invested by Partners, Proprietor, or an Entrepreneur, in their businesses. The capital may be introduced in business as both monetary or assets form. The main purpose behind the capital investment in the business is to start the business properly and run there business smoothly. Definition of Capital. Capital refers to the financial resources used in business to fund their operations like plant & machinery, cash, equipment, and other resources. These resources allowed to produce products or services to sell to the customer. Type of Capital. There different types of Capital 1) Fixed Capital:-    It refers to the durable capital goods, which used in the production of goods again and again until they wear out. Like machinery, tools, factory, building, etc are fixed capitals.  2) Working Capital:- It refers to the amount which helps to run the business. The funds being constantly used to pay for core business operations, which are an

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