What is meant by Joint Hindu Family Business ?

The Joint Hindu Family Business is a distinct form of organization peculiar to India. Joint Hindu Family Business is created by the operation of law. It does not have any separate and distinct legal entity from that of its members. The laws that govern Hindu Undivided Family (HUFs) are not codified and are read along with the Hindu Succession Act, 1956 and the Income tax Act, 1961. The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act, 2008. The membership in this form of business organization can be acquired only by birth or by marriage to a male person who is already a member of Joint Hindu Family. "When two or more families agree to live and work together, throw their resources and labour with joint stock and share profits and the losses together, then this family is known as composite family." There are two schools of Hindu Law-one is Dayabhaga which is prevalent in Bengal and Assam and the other is Mitakshara prevalent in the rest of the-country. According to Mitakshara law, there is a son's right by birth in the property of joint family. It means, when a son is born in family, he acquires an interest in the property jointly held by the family. The business of the Joint Hindu Family is controlled and managed by one person who is called 'Karta' or 'Manager'. The Karta or manager works in consultation with other members of the family but ultimately, he has a final say. The liability of Karta is unlimited while the liability of other members is limited to their shares in the business.