While the Hindu Succession Amendment Act, 2005 gave daughters equal rights in property, a recent Delhi High Court ruling has done away with the gender discrimination that existed as the Hindu Succession Act was clear on whether a woman can be karta. Based on ancient scriptures, the Hindu Succession Act deals with the intestate succession among Hindus, Buddhists, Jains, and Sikhs.

The high court ruled that the eldest woman member of a family can be its karta. A unique position carved out by Hindu customs and ancient texts, karta means the manager of a joint family. Until now, only men were allowed to be Karta in a Hindu Undivided Family (HUF).

The position of a karta is a powerful one, for this person controls, and is also a custodian of, the finances in an HUF. The karta borrow money for and on behalf of the family. S/he can spend money for the family without being accountable. The karta also has a say in the partition of the family. He or she can even gift away the movable properties of the family.

"The Hindu Succession Amendment Act, 2005 gave women equal rights of inheritance, making them coparceners. The karta usually is the eldest coparcener. The logical extension of the law implies that women can also assume the position of a karta,”

Married women can become the Karta as marriage does not alter the right to inherit the coparcenary. But, they say it is still not clear if her children would retain the same right in the family of her father.

Before the recent Delhi High Court ruling, there have been divided opinions on women as a karta in an HUF. Courts have ruled in favour of women being a karta only under certain circumstances. For example, if a male karta passes away and there’s no adult male member in the family to take his position, the wife can assume role of a karta until a male member becomes an adult.

HUF has been a subject matter of litigation as many wealthy families transfer assets to it for taxation purpose.

1) Instead of your mother you can become a Karta of your family and take control of your family, let it be tax few amount. and for day today expenses you can open separate account on your mother's name.

CIT v Seth Govindram Sugar Mills[1965] 57 ITR 510 (SC)

The Supreme Court held that a widow cannot be Karta of the HUF, though she can be a manager/ karta of an HUF for the Income-tax assessment..

2) since your mother is not a coparcener she cannot be karta of HUF

3) since your father died intestate apply for mutation of property in name of legal heirs

4) since fixed deposits were in individual name of father obtain succession certificate in name of legal heirs

5) rental income would not be transferred to HUF account

1. why did your CA ask to open HUF account in first place?

2. if the FD was standing in the name of your father, then you should have checked if any nominee is left.

3. if no nominee was left, then any legal heir of your father, including you, could obtain letters of administration from court

4. the holder of letter of administration would then divide the money to the legal heirs as per law applicable for intestate succession

5. similarly the rental income could be distributed

6. The property from which rental income accrues could also be transferred to the legal heirs using the letters of administration

7. so both movable and immovable properties of the deceased could be dealt with by obtaining letters of administration

Dear Client,

Bank officials are idiot, court in India ruled out that eldest women can be karta of HUF.

HUF valid.

Yes, but only income accrued from HUF, no other income.

Show them judgement of High Court.

1. The Hon'ble High Court of Delhi, in its landmark verdict pronounced in the matter of Mrs Sujata Sharma v Shri Manu Gupta & Ors [CS (OS) 2011/2006], has held that the eldest woman member of a Mitakshara Hindu Undivided Family (HUF) can be its "Karta / Manager".. So, the Bank Manager was wrong in saying that your mother can not be the Karta of your HUF. The HUF account is legally valid.

2. If the said FDs and the building were not in the name of the HUF and in the personal name of your late father, then the same can not be transferred to the HUF.

3. Your HUF is legal but the fact is that properties can be acquired by any or all of the HUF members in their separate names which can not be considered as the properties of the said HUF. the properties bought or acquired in the name of the HUF will be considered as HUF properties.

4. You shall have to obtain succession certificate to get the properties in the names of the successors and then put those properties in your said HUF duly mentioning the same in the ITR to be submitted for the said HUF.

1. The HUF is legal as per Landmark judgment of Hon'ble Delhi High Court. The high court has held that the eldest woman member of a family can be karta of a Hindu joint family.

2.You will have to file for a succession certificate in court and get the properties mutated in the name of the legal heirs. Succession certificate can also be used for purposes of fixed deposit transmission too.

3. Youll have to show them the judgment of high court.

Regards.

The HUF now created on the dead man's name is not valid.

Since the property was on your deceased father's name, it cannot come under HUF, the rental income cannot be accounted in the newly created HUF account.

Why do you people insist on HUF only.

First you inherit the properties and then create a HUF as per your desire.