Question

Under the Income Tax Act, 1961, a Hindu Undivided Family (HUF) consists of the following except:

• A. All persons lineally descended from a common ancestor and includes their wives
• B. Unmarried daughters
• C. A stranger who has been residing with the family for 10 years
• D. Head of the HUF ”Karta”

Hint:

HUFsarecreated by default under Hindu law and are used for tax benefits in India

Answer 1

The Correct Option is C

A Hindu Undivided Family (HUF) includes members who are lineally descended from a common ancestor, their wives, and unmarried daughters. However, a stranger, even if residing with the family for an extended period, does not become a part of the HUF as per the Income Tax Act, 1961