20 February 2016

Start Up Definition


Startups India entity definition. Eligibility criteria-up to 5 years, turnover up-to 25 crores, recognition process through mobile app/website-Notification | 19-02-2016 |

 

MINISTRY OF COMMERCE AND INDUSTRY
(Department of Industrial Policy and Promotion)

NOTIFICATION

New Delhi, the 17th February, 2016

G.S.R. 180(E).—The Government of India has announced 'Startup India' initiative for creating a conducive environment for startups in India. The various Ministries of the Government of India have initiated a number of activities for the purpose. To bring uniformity in the identified enterprises, an entity shall be considered as a 'startup'-

a) Up to five years from the date of its incorporation/registration,

b) If its turnover for any of the financial years has not exceeded Rupees 25 crore, and

c) It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;

Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a 'startup'; Provided further that in order to obtain tax benefits a startup so identified under the above definition shall be required to obtain a certificate of an eligible business from the Inter-Ministerial Board of Certification consisting of:

a) Joint Secretary, Department of Industrial Policy and Promotion,

b) Representative of Department of Science and Technology, and /

c) Representative of Department of Biotechnology

Explanation:

1. An entity shall cease to be a startup on completion of five years from the date of its incorporation/registration or if its turnover for any previous year exceeds Rupees 25 crore.

2. Entity means a private limited company (as defined in the Companies Act, 2013), or a registered partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2002).

3. Turnover is as defined under the Companies Act, 2013.

4. An entity is considered to be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property if it aims to develop and commercialize:

a. A new product or service or process, or

b. A significantly improved existing product or service or process, that will create or add value for customers or workflow.

Provided that the mere act of developing:

a. products or services or processes which do not have potential for commercialization, or

b. undifferentiated products or services or processes, or

c. products or services or processes with no or limited incremental value for customers or workflow

would not be covered under this definition.

5. The process of recognition as a 'startup' shall be through mobile app/portal of the Department of Industrial Policy and Promotion. Startups will be required to submit a simple application with any of following documents:

a) a recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator established in a postgraduate college in India; or

b) a letter of support by any incubator which is funded (in relation to the project) from Government of India or any State Government as part of any specified scheme to promote innovation; or

c) a recommendation (with regard to innovative nature of business), in a format specified by Department of Industrial Policy and Promotion, from any Incubator recognized by Government of India; or

d) a letter of funding of not less than 20 per cent in equity by any Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with Securities and Exchange Board of India that endorses innovative nature of the business. Department of Industrial Policy and Promotion may include any such fund in a negative list for such reasons as it may deem fit; or

e) a letter of funding by Government of India or any State Government as part of any specified scheme to promote innovation; or

f) a patent filed and published in the Journal by the Indian Patent Office in areas affiliated with the nature of business being promoted.

Department of Industrial Policy and Promotion may, until such mobile app/portal is launched make alternative arrangement of recognizing a 'startup'. Once such application with relevant document is uploaded a real-time recognition number will be issued to the startup. If on subsequent verification, such recognition is found to be obtained without uploading the document or uploading any other document or a forged document, the concerned applicant shall be liable to a fine which shall be fifty per cent of paid up capital of the startup but shall not be less than Rupees 25,000.

This notification shall come into force on the date of its publication in the Official Gazette. [F. No. 5(91)/2015-BE. I]

RAVNEET KAUR, Jt. Secy

19 February 2016

Amendment to Mega Exemption Notification-ST

Finance Ministry grants service tax exemption for services provided by Government / local authority to business entity having turnover upto 10 lakhs in preceding financial year w.e.f. April 1, 2016; Amends Notification No. 25/2012-ST dated June 20, 2012 : Ministry of Finance Notification 

17 February 2016

CBDT on Section 154


Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi, the 15th of February, 201016

Subject: Following the prescribed time limit in passing order under sub-section (8) of 154 of Income tax Act, 1961-regd

Sub-section (8) of section 154 of the Income-tax Act, 1961 ('Act') stipulates that where application for amendment is made by assessee/deductor/collector with a view to rectify any mistake apparent from record, the income-tax authority concerned shall pass an order, within a period of six months from the end of the month in which such an application is received, by either making amendment or refusing to allow the claim. It has been brought to the notice of the Board that the said time limit of six months has not been observed in deciding some applications. In such cases, the authorities often take a view that since no action was taken within the prescribed time-frame, application of the taxpayer is deemed to have lapsed, thereby not requiring any action.

2. The matter has been examined by the Board. In this regard, the undersigned is directed to convey that the aforesaid time-limit of six months is to be strictly followed by Assessing Officer while disposing applications filed by the assessee/deductor/collector under section 154 of the Act. The supervisory officers should monitor the adherence of prescribed time limit and suitable admin action may be initiated in cases where failure to adhere to the prescribed time frame is noticed.

3. The contents of this Instruction may be brought to the notice of all for necessary compliance.

4. Hindi version to follow.

(Rohit Garg)
Deputy Secretary to the Government of India

(F. No. 225/305/2015-ITA.II)

 

 

 

 

 

 

 

 

 

 

 

 

Instruction No. 01/2016

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi, the 15th of February, 201016

Subject: Passing rectification order under section 154 Income Tax Act, 1961-regd

Instances have come to the notice of the Board that in some cases, rectification order under section 154 of the Income Tax Act, 1961 ('Act') is being passed by the Assessing Officer on AST system without giving copy of the order to the taxpayer concerned. This is causing grievance to the taxpayers as they remain unaware of such order s and consequently, are unable to pursue the matter further, either in appeal or rectification, if required.

2. Sub-section (4) of section 154 of the Act mandates that rectification order shall be passed in writing by the Income Tax authorities. Therefore, on consideration of the matter, the Board hereby directs that all rectification applications must be disposed of after passing an order in writing, to be duly served upon the taxpayers concerned and not by merely marking necessary rectification on the AST System.

3. The contents of this instruction may be brought to the notice of all for necessary compliance.

4. Hindi version to follow.

(Rohit Garg)

Deputy Secretary to the Government of India

11 February 2016

Draft Format of Financial Statements

MCA issues draft format for financial statements in line with Ind AS   On 9th February, 2016, Ministry of Corporate Affairs issued draft format for financial statements (Revised Schedule III) in line with Indian Accounting Standards (Ind AS). The said format, if approved, shall be applicable on companies who are applying Ind AS voluntarily or shall apply mandatorily w.e.f 1st Aril 2016 or 1st April, 2017, as the case may be which is specified in Companies (Indian Accounting Standards) Rules, 2015.   Proposed revised Schedule III is similar to existing Schedule III of the Companies Act, 2013 subject to some differences. The major differences are as follows:   (i) The first half of the balance sheet requires presentation of assets and second part requires presentation of equity and liabilities, unlike present schedule III which requires presentation of equity and liabilities first and then assets.   (ii) Investment property, biological assets other than bearer plants, financial assets (categorised into investments, trade receivables, loans and others) shall be disclosed on the face of balance sheet under 'Non-current assets'.   (iii) Reserves and surplus, money received against share warrants and share application money pending allotment shall be clubbed into a single heading "Other Equity" in the balance sheet.   (iv) "Other non-current assets" shall be classified into capital advances and advances other than capital advances.   (v) Preference shares shall be classified and presented as 'Equity' or 'Liability' in accordance with the requirements of relevant Ind AS.   (vi) The Statement of profit and loss will include profit (a) profit or loss for the period; and (b) other comprehensive income for the period.   Stakeholders can provide their comments on the draft by 23rd February, 2016.   

07 February 2016

Investment Thumb rules

Few thumb rules help in financial decisions-

1) 100 minus our age should be our equity allocation.

2)Minimum  20 times of our yearly income should be our retirement fund.

3) We all should save minimum 30% of our income

4) Cost of our house should not be more than 6 to 8 times of our family income.

5) EMI should not be more than 35% of our gross monthly income. Zero is the best answer.

6) Rate of returns ideally should beat inflation.

7) Rule of 72 & 115......
How many years double or triple our money ?
* 72/Returns= double in yrs
* 115/ returns = triple in yrs.

8) Rule of 70= Future buying power of your money.
*70/Inflation= Number. of yrs.

9) Life cover should be  Minimum 8 to 10 times of your yearly income.

10) We should keep 3 to 6 months expenses as an emergency fund.

Moral-
Peple want shortcuts, that's why thumb rules find some place.

Wish you all decipline investing with thumb rules. 😊👍

Guidelines relating to Paperless Assessment Proceedings

CBDT Notification No. 2/2016 dt February 3, 2016: Guidelines relating to Paperless Assessment Proceedings

1. The AO shall issue notice(s) from his official email address (having domain name @incometax.gov.in) and shall attach scanned copies of the notice(s) u/s 143(2) or 142(1) containing his signatures in a PDF file(s).
2. The assessee shall also respond from his primary registered email address with PDF attachment(s). The assessee is entitled to furnish a letter to the AO informing any other alternative email address of his choice.
3. The AO shall place hard copies of all emails and supporting documents in the relevant assessment file for record purposes
4. For keeping audit trail of all e-notices/questionnaire issued by the Tax Officer to assessee and e-response by assessee thereof with supporting documents, a copy of email shall be marked to E-ASSESSMENT@INCOMETAX.GOV.IN
5. All emails sent or received as per this procedure shall be stored in the ITD database and its communication status shall be displayed in assessee's "My Account" on the E-filing portal.
6. The Tax Officer shall pass the Order and email the scanned copy of assessment order to assessee.

05 February 2016

Manner of Signing of Certificates by Chartered Accountant

💥ICAI released an announcement on Manner of Signing of Certificates by Chartered Accountant

With a view to bring uniformity in the manner of signing of certificates, icai has decided to require the members of the ICAI to include (in addition to any other requirements in this regard prescribed by the relevant law or regulation under which the certificate is being issued) the following details in their “Signatures” on the certificates issued by them:

1)Name of the CA firm* 

2) Firm Registration Number (FRN)* 

3) Name of the member 

4) Designation (Partner/Proprietor)

5) Membership Number 

Link: http://resource.cdn.icai.org/41158aasb30942announ.pdf

Rebate/refund of SB Cess on exports & services used in SEZ; Cenvat credit cannot be used for SB Cess & others

Dear Professional Colleague,

Rebate/refund of SB Cess on exports & services used in SEZ; Cenvat credit cannot be used for SB Cess & others

The Central Government ("CG") has issued various Notifications under the Service tax and the Central Excise for extending the benefit of refund/rebate to the Swachh Bharat Cess ("SB Cess") component and the input services used beyond factory for export. Further, the Cenvat Credit Rules, 2004 ("the Credit Rules") has been amended to allow Cenvat credit on commission agent's services and to make explicit that Cenvat credit shall not be used for payment of SB Cess.

Gist of all the Notifications is discussed hereunder for easy digest:

Rebate of Service tax on services used beyond the factory or any other place/premises of production/manufacture of goods, for their export

The CG vide Notification No. 01/2016-Service Tax dated February 3, 2016 ("Notification No. 1") has amended Notification No. 41/2012-Service Tax dated June 29, 2012 (Rebate of Service tax paid on the taxable services which are received by an exporter of goods and used for export of goods) ["Notification No. 41"] to include the taxable services that have been used beyond factory or any other place or premises of production or manufacture of the goods, for their export, in the case of excisable goods, under the definition of 'specified services'. Further, clause (B) of Notification No. 41 prescribing definition of 'place of removal' as the one defined under Section 4(3)(c) of the Central Excise Act, 1944, has also been deleted.

Increase in the rate of refund commensurate to the increased Service tax rate

The CG vide Notification No. 1 has further amended Notification No. 41 to increase the rate of refund commensurate to the increased Service tax rate in the following manner:

"(b) in the Schedule of rates, in column (4),-

(i) for the  figures 0.04, wherever they occur, the figures 0.05 shall be substituted;

(ii) for the  figures 0.06, wherever they occur, the figures 0.07"shall be substituted;

(iii) for the  figures 0.08, wherever they occur, the figures"0.09"shall be substituted;

(iv) for the  figures 0.12, wherever they occur, the figures 0.14"shall be substituted;

(v) for the figures 0.18, wherever they occur, the figures 0.21"shall be substituted; and

 (vi) for the  figures 0.20, wherever they occur, the figures"0.23"shall be substituted"

To view full Notification No. 1, please click on the link below:

http://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2016/st01-2016

Refund of SB Cess paid on specified services used in Special Economic Zone ("SEZ")

The CG vide Notification No. 02/2016-Service Tax dated February 2, 2016 ("Notification No. 2") has amended Notification No. 12/2013-Service Tax dated July 1, 2013 (Exemption on services received by units located in a SEZ or Developer of SEZ and used for the authorised operation) to enable the SEZ Unit or the Developer for refund of the SB Cess paid on the specified services on which ab-initio exemption is admissible but not claimed.

Further, the refund of amount distributed to the SEZ Unit or the Developer in the manner as prescribed in Rule 7 of the Credit Rules, will be determined by multiplying total Service tax distributed to the SEZ Unit or the Developer in the manner as prescribed in Rule 7 of the Credit Rules by effective rate SB Cess and dividing the product by rate of Service tax specified in Section 66B of the Finance Act, 1994.

To view full Notification No. 2, please click on the link below:

http://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2016/st02-2016

Rebate of SB Cess paid on all the input services used in providing services exported

The CG vide Notification No. 03/2016-Service Tax dated February 3, 2016 ("Notification No. 3") has amended Notification No. 39/2012-Service Tax dated June 20, 2012 (Rebate of the duty paid on excisable inputs or Service tax and cess paid on all input services used in providing service exported) to insert SB Cess under the definition of 'service tax and cess', to enable the provider of services to claim rebate of SB Cess paid on all the input services used in providing services exported in terms of Rule 6A of the Service Tax Rules, 1994.

To view full Notification No. 3 please click on the link below:

http://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2016/st03-2016

Cenvat credit shall not be used for payment of SB Cess

The CG vide Notification 02/2016-CE(NT) dated February 3, 2016 ("Excise Notification No. 2"), has amended Rule 3(4) of the Credit Rules, to insert a proviso providing that Cenvat credit shall not be used for payment of SB Cess.

It may also be noted here that the Central Board of Excise and Customs in their Frequently Asked Questions released on November 14, 2015 on SB Cess, had specifically provided that because SB Cess is not integrated in the Cenvat credit chain, its credit is not admissible:

"Q.14 Whether Cenvat Credit of the SBC is available?

Ans. SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax"

Cenvat credit admissible on services of sales commission agent

The CG vide Excise Notification No. 2 has further amended the definition of 'input services' under Rule 2(l) of the Credit Rules, to allow Cenvat credit of Service tax paid on sale of dutiable goods on commission basis, by inserting following explanation after sub-clause (C):

"Explanation.-For the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis."

It may not be out of place here to mention that in view of the conflicting judgments, eligibility to avail Cenvat credit of the services rendered by a commission agent has been a subjective issue. The Hon'ble High Court of Gujarat in the case of Commissioner of C. Ex., Ahmedabad-II Vs. Cadila Healthcare Ltd. [2013 (30) S.T.R. 3 (Guj.)], has disallowed Cenvat credit on commission agent's services whereas, the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Ludhiana Vs. Ambika Overseas [2012 (25) S.T.R. 348) had allowed the Cenvat credit. Thus, with the insertion of stated explanation, it may be contended by the assessees that because the same is clarificatory which was being disputed on the basis of divergent judgments, therefore, it would have retrospective effect.

To view full Excise Notification No. 2 please click on the link below:

http://www.cbec.gov.in/htdocs-cbec/excise/cx-act/notifications/notfns-2016/cx-nt2016/ cent 02-2016

Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.

Thanks & Best Regards,

Bimal Jain

04 February 2016

6 Changes in Name Availability



The Govt. has notified the Companies (Incorporation) Amendment Rules, 2016 ('Amended Incorporation Rules'). Now the process of reservation of name of companies has been simplified. Following changes have been made for ease of doing business in India:

1) Name of company need not to be in consonance with principal object:
Under extant norms, the company's name was necessarily required to be in consonance with principal object, if such name resembled any object of company. Now as per the amended Rules the name of company will not be considered undesirable even if it is not in consonance with the principal objects of the company as set out in Memorandum of association. Let us understand this condition with the help of an example. Suppose if a company wants to opt its name as 'ABC Builders Pvt. Ltd.' then it is not necessary that its principal object should be related to construction and development only. Thus, now company is free to choose such name which is not in consonance with principal object.

2) Usage of vague or an abbreviated name:
Under the extant norms there was restriction on usage of vague and abbreviated name. How many of us knows about ANI Technologies Pvt. Ltd but if one would say 'OLA' then most us might have heard of it and even enjoyed its first free ride. 'OLA' could have registered its name containing 'OLA' if there was no such restriction on usage of abbreviated name. The Amended rules does away with restriction on usage of vague and abbreviated name. Now a company can use either vague or an abbreviated names such as 'ABC limited' or '23K limited' or 'DJMO' Ltd.

3) No need to change name on change in business activity:
As per the extant norms if any company has changed its activities which are not reflected in its name then it would be required to change its name in line with its activities. However, such requirement has now been done away with under the amended Rules.

4) Central registry to dispose of name reservation application:
Now an application for the reservation of a name made in INC.1 shall be approved or rejected by the Registrar, Central Registration Centre. Earlier, the authority to dispose application for reservation of name was with respective ROCs.

5) Additional opportunity to remove defects:
Now while going for the fast-track mode of incorporation the registrar can give third opportunity to company to remove such defects or deficiencies.

6) Usage of Name containing Name of other person:
Under the extant norms, in case the key word used in the proposed name of a company is the name of a person other than the name(s) of the promoters or their close blood relatives, then NOC from such other person(s) and the proof of relation were required to be attached, respectively. Now such requirement of furnishing NOC and proof of relation has been removed.

(Source:taxmann)


AP VAT 24 Amendments at Glance

The Andhra Pradesh Value Added Tax (Amendment) Act,2016
24 Amendments Made at Glance
Sl. No.
Section
Nature of Amendment

01


Governor of AP has given assent on 8th January,2016
Published in Official Gazettee on 12th January,2016

02
Section 2(47)
A new definition for "Zero Rated Sales" replacing the old definition
"Zero Rate Sales" means the sales which are taxable at the rate of Zero and which are also eligible for input tax credit subject to the conditions as may be prescribed".
Prescribed conditions to be notified.

03
Section 4(4)(iv)
To levy purchase tax where goods after purchase are dispatched to place outside the State otherwise than by Sale in course of inter-state trade and commerce or export out of Indian territory.

04
Section 4-A
Imposing tax @ 0.5% on Sale of HSD and Furnace Oil to Foreign Outgoing International Ships.

Imposing tax @ 5% on Sale of Furnace Oil to Coastal Ships.

05
Section 13(3)(aa)

Imposes requirement of payment of tax by selling dealer in respect of goods on which input tax credit has been claimed in terms of Section 13(3) w.e.f. April 1,2015

06
Section 21(1A)
Requires every VAT dealer to furnish Certificate of Audit of Accounts duly certified by Chartered Accountant for every financial year, by December 31 subsequent to financial year to which statements relate, and failure to furnish will attract penalty of Rs.3,000 per day of delay from due date till actual submission.

Rules and Forms to be prescribed for audit of accounts of VAT dealer


Section 21(1B)
Requires every TOT dealer to furnish Certificate of Audit of Accounts duly certified by Sales tax Practitioner  every financial year, by December 31 subsequent to financial year to which statements relate, and failure to furnish will attract penalty of Rs.3,000 per day of delay from due date till actual submission.

Chartered Accountant is not eligible to certify accounts of TOT Dealer

Rules and Forms to be prescribed for audit of accounts of VAT dealer





07
Section 22(3B)


Section 22(4)
New Section substituted
Tax Deducted at Source on Sale of Prescribed Goods

Recovery proceedings introduced for non payment of tax at source
Penalty leviable on non payment of TDS

W.E.F  23/09/2015

08
Section 31
Notify the period of time to be excluded for the purpose of computation of the time limit for filing of appeals

09
Section 32
Section 32(5) has been omitted
Section 32(6) & (7) have been substituted.

10
Section 34
The period of petition to High Court has been increased from 90 days to 120 days

11
Section 38 (6)
Rate of Interest on  refund of tax has been increased from 1% to 1.25% pm

12
Section 39(2)
Rate of Interest on  late refund of tax has been increased from 1% to 1.25% pm

13
Section 45
(3)(b)(ii)
4(3)

Check Post authority can verify way bill also

Compulsory furnishing of Security for an amount equal to two (2) times the amount of tax payable.

The detained vehicle shall be released only after the payment of tax and security furnished.

14
Section 47
Radio Frequency Identification (RFID) Tag or any other Tracking device offered by the department introduced in addition to transit pass

Minimum Penalty of Rs.10,000/- for fails to carry RFID

15
Section 48 (a)
Now owner of goods vehicle is required to produce way bill

16
Section 48-A
Penalty for owner of goods vehicle unable to produce required documents at check post

17
Section 56-A
Penalty for failure to upload the details of tax invoices
Penalty @5% of total turnover covered by such invoices

Before levy of penalty reasonable opportunity to be given

18
Section 57 (5)
No order for the forfeiture of tax shall be made after expiration of 6 years from the date of collection of tax instead of 3 years at present

19
Section 59
Now Driver or Incharge of vehicle is also punishable with imprisonment with fine (earlier only any dealer)

Offences of obstructing the authority or not stopping the goods vehicle or vessels.

Imprisonment – Minimum One Month- Maximum 6 Months with fine

20
Section 61
"Transporter" is also allowed for compounding of offences.

Transporter Compounding – Rs.1,00,000/-

21
Section 63
Failure to attend summons
VAT Dealer
Penalty
Rs.1,000/- for every day of delay after 30 days from the date of summons/notice issued
Maximum Rs.30,000/-

TOT Dealer
Penalty
Rs.350/- for every day of delay after 30 days from the date of summons/notice issued
Maximum Rs.10,000/-

Other Persons
Rs.500/- per day
Maximum Rs.15,000/-


22
Schedule I
Entry Section 57  substituted with
Sugar including Khandasari Sugar

23
Schedule IV
Industrial Inputs

Item 236
Furnace Oil

24
Schedule VI
Revised Rates for levy of tax at the point of first sale in the State for
a.       India Made Foreign Liquor
b.      Beer
c.       Wine
d.      Ready to Drink Varieties (RTD)

03 February 2016

Women Can be a Karta of HUF

WOMEN CAN BE A KARTA IN HUF

In a recent judgment, Delhi High Court has ruled that after Hindu Succession (Amendment) Act, 2005 there is no reason why Hindu women should be denied the position of a Karta. If a male member of an HUF, by virtue of his being the first born eldest, can be a Karta, so can a female member.

Case Law Details:


CS(OS) 2011/2006


Mrs. Sujata Sharma (Plaintiff) vs Shri Manu Gupta (Defendent)


Date of Judgment: 22-12-2015


Coram: Justice Najmi Waziri

Facts of the Case(s):


In the present case, a suit was filed by the eldest daughter of HUF claiming her right to be Karta of HUF and challenging her cousin brother's claim after the passing of her father and three uncles.

Question before the Court


Whether the eldest female, being the first born amongst the co-parceners of the HUF property, would by virtue of her birth, be entitled to be its Karta?

Excerpts from the Judgment:


The learned counsel for the plaintiff further relies upon the 174th Report of the Law Commission of India, which has argued that when women are equal in all respects of modern day life, there is no reason why they should be deprived of the right and privilege of managing HUF as their Karta. She argues that it is in this context, that Section 6 was so formulated that it covers all aspects of succession to a coparcener which are available to a male member to be equally available to a female member also.

It is rather an odd proposition that while females would have equal rights of inheritance in an HUF property, this right could nonetheless be curtailed when it comes to the management of the same. The clear language of Section 6 of the Hindu Succession Act does not stipulate any such restriction.

What emerges from the above discussion, is that the impediment which prevented a female member of a HUF from becoming its Karta was that she did not possess the necessary qualification of co-parcenership. Section 6 of the Hindu Succession Act is a socially beneficial legislation; it gives equal rights of inheritance to Hindu males and females. Its objective is to recognise the rights of female Hindus as co-parceners and to enhance their right to equality apropos succession. Therefore, Courts would be extremely vigilant apropos any endeavour to curtail or fetter the statutory guarantee of enhancement of their rights. Now that this disqualification has been removed by the 2005 Amendment, there is no reason why Hindu women should be denied the position of a Karta. If a male member of an HUF, by virtue of his being the first born eldest, can be a Karta, so can a female member. The Court finds no restriction in the law preventing the eldest female co-parcener of an HUF, from being its Karta. The plaintiffs fathers right in the HUF did not dissipate but was inherited by her. Nor did her marriage alter the right to inherit the co-parcenary to which she succeeded after her fathers demise in terms of Section 6. The said provision only emphasises the statutory rights of females. Accordingly, issues 5, 6 and 8 too are found in favour of the plaintiff.

01 February 2016

 The eldest female member of a family can be its "Karta"

 The eldest female member of a family can be its "Karta", the Delhi high court has ruled in a landmark verdict. A unique position carved out by Hindu customs and ancient texts, "Karta" denotes managership of a joint family and is traditionally inherited by men.

"If a male member of a Hindu Undivided Family (HUF), by virtue of his being the first born eldest, can be a Karta, so can a female member. The court finds no restriction in law preventing the eldest female co-parcenor of an HUF, from being its Karta," Justice Najmi Waziri said in a judgment made public earlier this week.

The Karta occupies a position superior to that of other members and has full authority to manage property, rituals or other crucial affairs of the family. These include taking decisions on sale and purchase of family assets, mutation of property etc.

http ://m.timesofindia.com/india/Woman-can-be-kartaof-a-family-Delhi-high-court/articleshow/50799462.cms

Five Days Residential Programme on Advanced Leadership for Chartered Accountants at IIM Ahmedabad

ICAI: Registration for the 2nd Batch of *Five Days Residential Programme on Advanced Leadership for Chartered Accountants at IIM Ahmedabad *...