Saturday, January 10, 2015

A Joint Hindu Family firm is a corporate body.

Ans. This statement is True.

i. The Joint Hindu Family firm does not enjoy legal status independent of co-parceners. They are inseparable from each other.

ii. However, this business has been given recognition by the Income Tax Act, 1961.

iii. It has legal entity with limited liability of the members except the Karta.

iv. The liability of Karta is unlimited.

v. Even death of a member including Karta does not cause its dissolution. Thus we can say that, A Joint Hindi Family firm is a corporate body.