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Tag: Hindu laws

  • Can grandchildren be appointed as Karta of Hindu Undivided Family (HUF)?

    My grandfather was working his HUF checking account in Syndicate Bank as Karta of the HUF and paying common taxes. He handed away in June 2023 forsaking two grandsons, two daughters, and his spouse. His son (my father) handed away 12 years again. Who can now turn into the Karta of the HUF and keep it up the account transaction? What is the process to observe with the financial institution on this case?

    Answer: Under the Hindu legal guidelines the senior most grownup coparcener turns into karta of the HUF. The similar rule applies to the appointment of Karta after the demise of an present Karta. Earlier solely male members had been thought-about as coparceners and thus had been eligible to turn into Karta of a HUF however after the modification of the Hindu Succession Act, 1956, in September 2005 daughters and sons each are to be handled as coparcener. So seniormost daughter of your grandfather i.e. your eldest aunt can turn into Karta of the HUF. If any or each the aunts are unwilling or incapable to be appointed as Karta of the HUF, the eldest of you or your brother can turn into Karta of the HUF supplied one is an grownup.

    No main formalities are required to be complied with. Though the subsequent senior most coparcener mechanically turns into the brand new karta of the HUF at instances, statutory authorities could require a declaration from all members of the HUF declaring the eldest coparcener as the brand new karta of the HUF. Further, a declaration from the members of the HUF together with the demise certificates of the previous karta could also be mandated by banks as a way to give impact to the change of title of the Karta within the HUF’s checking account. Let me inform no succession certificates is required within the case of a HUF although some banks do insist on the identical on account of ignorance of the precise legislation.

    Balwant Jain is a tax and funding professional and may be reached at [email protected] and on @jainbalwant on Twitter.

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    Updated: 02 Aug 2023, 11:08 AM IST

  • I’m a part of my father’s HUF. Can I’ve yet one more HUF?

    I’m a part of my father’s HUF. Can I’ve yet one more HUF consisting of me, my spouse and my daughter? Can I turn into Karta of each the HUF on the similar time?

    As pre the Hindu legal guidelines an HUF can consist of 4 generations consisting of descendent of 1 frequent male ancestor. So multiple generations will be a part of the identical HUF on the similar time. Within a bigger HUF there will be many smaller HUFs additionally consisting of household of the coparceners. So an individual could be a member of multiple HUF on the similar time. For instance, he could be a member of his personal HUF, HUF of his father, HUF of his grandfather and HUF of his nice grandfather on the similar time.

    So whereas being a member of your father’s HUF, you can even have your individual HUF consisting of your self, your spouse and your youngsters together with a lady youngster. Since multiple coparcener are obligatory for constituting an HUF for revenue tax functions and since daughter are additionally handled as coparcener after the modification of Hindu Succession Act in 2015, your loved ones consisting of you, your spouse and the daughter will represent an HUF distinct and totally different out of your father’s HUF.

    There isn’t any restriction on one individual changing into Karta of multiple HUF. Since solely a coparcener can turn into Karta of an HUF and since you’re a coparcener of each the HUF, you’ll be able to turn into and stay Karta of each the HUF on the similar time.

    Balwant Jain is a tax and funding skilled and will be reached at [email protected]

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