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. Female can also be coparcener. Dayabhag law thus recognize the devolution by succession and it doesn't recognize the devolution by the survivorship as it recognized in case of mritakshra law.

Mritakshra Sampraday  (मृताक्षरा समप्रदाय)

Mritakshra law applies whole part of India except Bangal and Assam. Under  this law,
the son acquires by birth an interest in the ancestral property. Ancestral property, under the Mitakshara Law, thus devolves on the death- of a coparcener by survivorship. Mitakshara law recognizes two kinds of devolution of property as follows: -

a)Devolution by Succession is applicable to the Joint family property and
b) Devolution by Survivorship is applicable to Property held in severalty by the last owner.

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