• HUF karta transfer after death

I have a query related to HUF transfer. My father passed away few months back. In his HUF, he had some bank accounts, property. 

How does someone now become the karta of this same HUF. Is it transferable, if so how?

HUF Members (Left): Me (Daughter, Unmarried), Brother (Unmarried), Mom
Asked 5 years ago in Family Law
Religion: Hindu

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9 Answers

The oldest son and now daughter also have equal rights can be karta in the said HUF based on the death certificate of father, the son can be appointed as karta of same, you can get in the PAN card of HUF the name change of the karta. Further in the bank accounts the name can be updated. 

A request letter to change karta along with the death certificate and NOC from other coparceners can be filed with bank to change the karta. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

you have to send letter to bank signed by all members that father expired on  x date . That members have decided to appoint your brother as karta and that we have no objection to his appointment . That he is authorised to operate all bank accounts of HUF , sign all documents for and on behalf of HUF 

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Obtain the PAN card updated in name of new karta and further your brother can give a declaration and coparceners can sign same declaring that he is karta of his father HUF and you all are coparceners. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0


Only a coparcener can become Karta of a HUF. By virtue of the Hindu Succession (Amendment) Act 2005, daughters can also become coparceners and have interest by birth in coparcenary property similar to sons. Therefore, you can continue with your father’s HUF and become Karta of the HUF. There is no requirement to form new HUF and obtain new PAN.You may be eligible to operate the same bank account by submitting declaration about change in Karta.

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

When the Karta of the HUF has expired then bank account remains the same subject to submission of declaration cum no objection letter to the bank from the new Karta and co-parceners .. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear Sir,

The following information may kindly be read:

All HUF Assets Should Be Taken As Joint Property Unless Proven Otherwise: SC [Read Judgment]

What is a HUF or Hindu Undivided Family?

A HUF or Hindu Undivided Family (HUF) consists of all person lineally descended from a common ancestor and includes their wives and unmarried daughters. Usually, a joint Hindu family would consist of a male Hindu, his wife and his unmarried daughters. The daughter ceases to be a member of her father’s family on marriage and becomes a member of her husband’s family. However, the existence of a joint estate is not an essential requisite to constitute a joint family. A joint Hindu family or Hindu Undivided Family can also consist of a single male member and widows of deceased male members.

Requirement to Form HUF

A Hindu Undivided Family must consist of at least two members to constitute a joint family. The existence of estate or property is not an essential requirement to form a Hindu Undivided Family. Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family.

Note: Jain and Sikh families  though are not governed by the Hindu Law, can be treated as a HUF for Income Tax purposes.

HUF under Income Tax Act

A HUF is recognized under Income Tax Act as a separate assessable entity if two conditions are satisfied:

  • There should be a coparcenership. 
    • Coparcenery is joint inheritance or heirship of property. Coparcenership is said to exist in a Hindu Undivided Family if the right to joint enjoyment, the right to call for partitition and the right of survivorship is held in coparcenary.

  • There should be a joint family property which consists of ancestral property, property acquired with the aid of ancestral property and property transferred by its members.
    • Ancestral property is any property which a man inherits from any of his three immediate male ancestors, i.e. his father, grandfather and great grandfather. Property inherited from any other relation is not treated as ancestral property.

Finally, it is important to note that once a joint family income is assessed as that of HUF, it continues to be assessed as such in subsequent assessment years till partition is claimed by coparceners.

Benefits of Forming HUF

One of the major benefits of forming a HUF is that a HUF is considered a separate legal entity and is thus eligible to obtain a PAN card and have a bank account opened in the name of the HUF. A HUF can be easily formed and once formed, the “karta”, usually the oldest male head of the family, is provided additional basic tax exemption of Rs. 1.8 lakh per year, along with the benefit of lower tax slabs, i.e, 10% tax on income up to Rs. 5 lakh and 20% up to Rs. 8 lakh.

 

 

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

If the other coparcenors have given their noc for son being karta, then what is the issue

What other way does the tehsildar expect for the son to be appointed as karta

His demand seems unreasonable

Also if the property is to be sold then the HUF can be simply dissolved by signing a deed of dissolution cum partition

Then all the members can transfer the property (ie 1/3 x 3)to the buyer

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

Only a coparcener can become Karta of a HUF. By virtue of the Hindu Succession (Amendment) Act 2005, daughters can also become coparceners and have interest by birth in coparcenary property similar to sons. 
Your brother can become a karta and continue the HUF in the same manner with the same PAN. 

Your brother may be eligible to operate the same bank account by submitting declaration about change in Karta. 

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Generally senior male member of HUF acts as Karta (Head) of the joint family. Karta can sell the property owned in the name of HUF only in case of legal necessity for family needs and for benefit of the estate. 

After the death of karta the property continues to be a property belonging to the HUF and since there is no partition of HUF and as the same can be sold jointly by all the surviving members of the HUF, 

So you can obtain a registered POA from others to sell the property which cannot be objected by the sub-registrar.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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