Law Commission proposes doing away with concept of Hindu Undivided Family

Income tax experts believe that this proposal has been made primarily because of the government's increased focus on tax compliance

In a recommendation that can cause a lot of heartburn for business houses and taxpayers, the Law Commission on Friday proposed doing away with the concept of Hindu Undivided Family, or HUF. 

According to the income tax department statistics, there were almost two million registered HUFs till March 2018.

In a consultation paper called ‘Reform of Family Law’, the Commission came down hard on HUFs. The strongly worded paper says "justifying the institution on grounds of deep-rooted sentiments at the cost of country’s revenues may not be judicious".

The paper quotes former chief commissioner, income tax, T C A Ramanujam,