HUF
Regulation & taxHindu Undivided Family — a family unit recognised as a separate taxpayer with its own PAN.
In plain terms
A second exemption limit and slab progression. Only helps for genuinely shared family assets, not your salary.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Common control combination
AccountingAlso called: Business combination under common control
A merger of entities that were already controlled by the same party before and after the transaction — a group reshuffle rather than an acquisition.
In plain terms
Nothing is really acquired in economic terms, so the combined figures are presented as though the businesses had always been one, and prior periods are restated.
Coparcener
Regulation & taxA member with a birthright share in HUF property.
In plain terms
Daughters have been coparceners on the same footing as sons since 2005, married or not.
Karta
Regulation & taxThe member who manages an HUF’s affairs.
In plain terms
Manages but does not own. Since 2005 a daughter can be Karta too.
Partition
Regulation & taxThe formal division of HUF assets among coparceners, dissolving the entity.
In plain terms
Far easier to create an HUF than to unwind one — partition needs agreement from everyone.
Separate PAN
Regulation & taxA distinct tax identity, as an HUF or company holds independently of its members.
In plain terms
What makes an HUF a separate taxpayer rather than an accounting label.
Monte Carlo simulation
Risk & psychologyAlso called: Monte Carlo
Replaying a set of outcomes in many random orders to see the range of results the same edge could produce.
In plain terms
Your equity curve was one shuffle of the deck. This deals the same cards again a thousand times and shows the hands you might just as easily have got.
Pooling of interests
AccountingAlso called: Pooling of interests method
The method used for a common-control combination: assets and liabilities carried across at existing book values, with the difference taken to a capital reserve.
In plain terms
No goodwill arises, which is the fingerprint. A capital reserve moving instead of goodwill appearing tells you a group reshuffle happened rather than a purchase.
Sample variance
Risk & psychologyThe spread of outcomes you would see from repeated draws of the same underlying process.
In plain terms
Thirty trades is thirty trades of information, however many times you reshuffle them. A small sample presented a thousand ways is still a small sample.