Can a daughter change into Karta of an HUF?

My father had a Hindu Undivided Family (HUF) checking account and a PAN related to it by means of which he paid all taxes on our agricultural revenue and rental revenue. I’m married and staying with my husband and a 3-year outdated son. My father handed away three years again abandoning me and my mom. We are uncertain about learn how to proceed with the HUF PAN after his demise. Who would change into the Karta with solely two surviving feminine members. As of now we’re nonetheless paying taxes utilizing the outdated HUF PAN. Can we open a new HUF account with a brand new PAN with my mom being Karta and my husband and I being members to HUF? Can a minor grandson have a job in such an association? Or, can we proceed utilizing outdated PAN? However, we’re not allowed to open any new financial institution accounts utilizing that PAN. How ought to we handle this? 

Since solely individuals who’ve descended from a typical male ancestor can change into coparcener, your mom cannot be handled as coparcener so she can not change into a Karta of the HUF. Earlier solely a male member of the household who was handled as a coparcener, may change into Karta of an HUF however after the modification of Hindu Succession Act in 2005, daughters have been placed on par with sons making them additionally coparceners. So after the modification a daughter may also change into Karta of an HUF. So you’ll be able to proceed together with your father’s HUF and change into Karta of the HUF. There is not any requirement to type new HUF and acquire new PAN. Since solely individuals who’ve descended from a typical male ancestor can change into coparcener, your husband and son shall not change into both coparcener or member of the HUF. You needn’t open a brand new checking account to hold on the monetary transaction and proceed with the present checking account. You need to submit proof of you being a daughter of deceased Karta of the HUF to file your title as Karta of the present HUF. You could face some drawback in doing so as a result of financial institution workers should not so properly versed with the HUF legal guidelines and you could have to elucidate them the provisions of the amended provision of the Hindu Succession Act, 1956. The case of Mrs. Sujata Sharma Vs Shri Manu Gupta determined by the Delhi Court on 22th December 2015 will help you on this regard the place the Delhi High Court has held {that a} daughter can change into Karta of an HUF. 

Balwant Jain is a tax and funding skilled and may be reached on jainbalwant@gmail and @jainbalwant on Twitter

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