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Assessment of HUF after partition as per Section 171

HUF will be assessed as HUF till partition is admitted by ITO
  • When at assessment, it is said by any member that HUF has been partitioned wholly or partially; Assessing Officer may inquire by giving notice to all members
  • On completion of inquiry by assessing officer, AO shall record the findings as to whether there has been whole or partial partition and if there has been such partition; the date on which it has taken place
  • Where a partial partition has taken place after 31st December, 1978, no claim that such partial partition has taken shall be inquired into and no findings shall be recorded. Such family shall continue to be liable to be assessed as if no such partition has taken place. It shall be assessed as HUF
  • Where a finding of total/partial partition has been recorded by the AO and partition took place during the previous year, the total income of the family in respect of the period upto the date of such partition shall be assessed as if
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Funny MEME : TAX Keeps Changing

Rock IPCC Tax

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Incomes not treated as those of HUF & deductions available from GTI to HUF

Incomes not treated as those of HUF
  • Income from property transferred to a member
  • Income from property transferred to the family
  • Income from personal business of a member
  • Incomes in case only one coparcener is there in Dayabhag School
  • Income earned by personal efforts of a member
  • Impartible estate
Deductions available to HUF from Gross Total Income -
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Conditions for being assessed as HUF

The following can be regarded as the two main conditions which are required to be complied with for being assessed as a Hindu Undivided Family(HUF) -

  1. There should be coparceners
  2. There should be any common property of the family

Here, “coparceners” refers to two or more individuals inheriting any property together, or in other words two or more people who are co-heirs, and have rights on the property that they inherit

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Hindu Undivided Family(HUF) - Meaning & Types

According to Hindu Law," A Hindu Undivided Family consists of all male persons lineally descended from a common ancestor (excluding such persons who have separated themselves from the joint family by partition of assets) and includes their wives & unmarried daughters, and also a stranger of HUF"

HUF is mainly governed by either of these two schools of law -

  1. Mitakshra
  2. Dayabhag
It is to be noted that Dayabhag School is popular majorly in parts of Bengal only and Mitakshra stands as the most followed and exercised school of law for HUFs

These schools are majorly influenced by Hindu laws, traditions and practices.
Infact "Mitākṣarā" & "Dāyabhāga" are two legal treatise and commentaries of hindu law which deal with the law and procedure of inheritance. The central difference between the texts is based upon "when one becomes the owner of property". The Dāyabhāga does not give the sons a right to their father's ancestral property until after his death, unlike Mitākṣarā, which gives the sons the right to ancestral property upon their birth.

For further readings regarding these schools, one may refer to the articles- Mitākṣarā and Dāyabhāga on Wikipedia-The Free Encyclopedia
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Importance of Financial Statement Analysis

In a nutshell, the objective of financial analysis is a detailed cause and effect study of profitability and financial position. Financial Statement Analysis and Interpretation is vital due to following reasons -

  • Estimation of future earning capacity along with computation of present earning capacity
  • Inter Firm Comparison
  • Determination of short as well as long term solvency of the firm
  • Finding out overall and department-wise efficiency of firm on the basis of available financial information 
  • Assessing development in future by making forecasts and preparing budgets
  • Focusing the attention on general financial strength of the business enterprise

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Financial Analysis - Meaning and Objects

Financial Analysis - Meaning and Objects
Financial Statements Analysis is largely a study of Relationship among the various financial factors in a business as disclosed by a single set of statements and a study of trend of these factors as shown in a series of Statements 

The Objects of Financial Analysis are as follows :
  • To find out financial stability of a business concern
  • To assess the earning capacity of the firm
  • To estimate and evaluate the stock and fixed assets of the concern
  • To assess the firm's capacity and ability to repay short term and long term loans
  • To expect about the administrative efficiency of the management of the business concern
  • To estimate and examine the possibility of future growth of business


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