If after the death of karta if new karta is not appointed then it will get defunct. You need to dissolve it if you are not willing to continue. It's a legal entity and needs to be procedure wise dissolved
Can HUF continue?
Dear Sir/madam, My Grandfather formed HUF with H(husband) as Karta alongwith W(Wife) and S(son) by executing a deed which included the said 3 members in 1990. They also had a D (daughter) who was married before deed was executed. So, she wasn't part of HUF. Also, S was married to SW(Son's wife) and they had two daughters and a Son. H & W died few years back So S became the karta and continued the HUF till now. Recently, due to sudden demise of S, now can we continue HUF or it is dissolved automatically? Can my grandson (i.e S's son) become karta of aforesaid HUF and by ammendment to the deed
Asked 4 years ago in Family Law
Religion: Hindu
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24 Answers
One the death of a karta, the next senior most member automatically becomes the new karta of the HUF but at times, statutory authorities may require a declaration from the members forming part of the HUF declaring the eldest coparcener as the new karta of the HUF.
When Karta of the HUF dies, the next senior male member takes over as Karta. If the senior most member gives up his right, a junior coparcener can become Karta of the HUF, with the consent of all other major co-parceners as held by Supreme Court in Narendra Kumar J. Modi Vs CIT (1976) 105 ITR 109 (SC)
Yes with the death of S his legal heirs become member of HUF with the eldest Male member becoming the Karta.
As long as more than one family members are alive with a Male member then the HUF will survive.
On demise of S HUF can continue with son as karta of HUF
Without examination of deed of HUF ,difficult to answer your questions.
Either you can continue the HUF for tax benefits and do partition and dissolve the HUF. Automatically it won't dissolve.
yes, Grandson will become Karta by default as he is the member of HUF.
Son only will become Karta and if he is elder minor than daughters than become HUF or elder daughter.
No need of amendment, son will replace father as karta.
- As per Delhi High Court judgement , an Eldest female member of the family also can be Karta in a HUF.
- Hence, after the demise of a Male Karta , it is now possible for a daughter to become a karta of the HUF under the circumstance where she is the eldest adult coparcener in the family, but a widow cannot be the Karta.
- Hence, due to sudden death of S , HUF will continue ,and further the son of S can also become the Karta
Dear Sir/Madam,
The addendum may be added to the deed and new members may be taken in the HUF and died members may be removed from the list of members as per law. So the grandson can become Karta without much hindrance.
When Karta of the HUF dies, the next senior male member takes over as Karta.
Yes, he can become the karta of the family and can get the deed registered.
HUF does not come to an end on the demise of karta. There is no automatic dissolution of HUF on the demise of karta. The next senior-most member automatically becomes Karta and carries on with the business of 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, daughters can also become karta and can then continue with father's HUF.
1. Yes you can continue HUF as eldest female member of HUF can become karta of HUF.
2. You can also make son of S as karta of HUF if he is above 18 years of age.
Yes son's son can become karta of the HUF on demise of S and continue HUF.
What is the procedure for dissolving the HUF if we do not want to continue?
Asked 4 years ago
BY doing partition, HUF will dissolve.
dissolution of HUF can be done by entering into deed of partition for division of properties by metes and bounds
2) it should be duly stamped and registered
3) In the case of total or complete partition, the Hindu Undivided Family ceases to exist as such and therefore, where there is a proper claim for partition and where the same is accepted by the AO, the Hindu Undivided Family ceases to be assessed as an HUF after the date of total partition.
4) where a genuine complete partition takes place and some property is divided among the persons entitled to the share on partition, the income from the partitioned assets is liable to be assessed in the hands of the smaller branches of the HUF formed by the coparceners of a bigger Hindu Undivided Family
5) you can enter into memorandum of family arrangement recording the partition nut AO has to be satisfied that partition has taken place
You can yourself dissolve it by deed of dissolution and later stop filing income tax return and informing the income tax and bank authority.
Dissolution of HUF occurs when partition of HUF's property is done. Partition of HUF can be done at any time i.e. either on Survival of Karta or on death of Karta. Partial Partition of HUF is not allowed as per Income Tax Act 1961.
you can partition the property of HUF and the same will result in its dissolution.
HUF is dissolved only on the partition of property between the members. Please note partly partition of HUF is not approved under this ACT, Partition means full partition. Draw up a deed of family partition and register the document.
1. A partition deed has to be drawn between members of HUF to divide the properties of HUF among them. No separate dissolution deed is required to be executed.
2. Under Hindu Law once the status of Hindu Family is put to an end, there is notional division of properties among the members and the joint ownership of property comes to an end. However, for an effective partition, it is not necessary to divide the properties in metes and bounds. But under tax laws for an effective partition division by metes and bounds is necessary.
3. Partition under Hindu Law, can be total or partial. In total partition all the members cease to be members of the HUF and all the properties cease to be properties belonging to the said HUF.
Yes the karta can be the son and hence amend it and make him the karta of the huf.
That can be done through court proceedings. Engage a lawyer and he will do the needful. The property shall be divided amongst all the members of the huf.