Tax Glossary Definition
A Joint Hindu Family (HUF) is a family unit recognized under Hindu law, consisting of individuals lineally descended from a common ancestor, including their wives and unmarried daughters. For tax purposes, an HUF is treated as a separate legal entity or assessee under the Income Tax Act, distinct from its members.
Example: An HUF consisting of a father, son, and daughter earning rental income from jointly owned ancestral property is taxed separately in the name of the HUF.
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