• Can an American citizen of Indian origin become Karta of HUF?

I, an Indian by birth, am the Karta of an HUF. On my passing away can my only son, who has acquired American Citizen ship become the Karta? What documents have to be presented for change of khata in respect of landed property?
Thanks.
Asked 3 years ago in Property Law
Religion: Hindu

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16 Answers

1. Yes, your American citizen son can become Karta of a HUF.

2.  For change of Khatha, if the property is situated within the BBMP limits, a prescribed form has to be obtained from BBMP and the details have to be filled up and it has to be submitted in the jurisdictional BBMP office enclosing therewith notarised copies of Death Certificate, Property Documents, Family Tree or Legal heirship certificate, Encumbrance Certificate, Latest Tax Paid receipt. 

3.  To change the Khata, the above documents can also be uploaded online in Bangalore One Centres spread throughout Bengaluru.

U R Welcome.

Shashidhar S. Sastry
Advocate, Bangalore
5463 Answers
330 Consultations

If your son deals with only residential properties, then his American citizenship does not create any difficulties for selling, leasing, etc., of the HUF property in India.

Shashidhar S. Sastry
Advocate, Bangalore
5463 Answers
330 Consultations

A Karta of an HUF can be a non-resident (provided he is a Hindu). However, the residential status of HUF might change under the Income-Tax Act, 1961. An HUF is said to be resident in India if control and management of its affairs is wholly or partly situated in India.

Ajay Sethi
Advocate, Mumbai
97617 Answers
7902 Consultations

Your son can be a karta in HUF after your death irrespective of the fact of his citizenship status by virtue of your being an Indian citizen.

Siddharth Jain
Advocate, New Delhi
6386 Answers
102 Consultations

His citizenship of USA will not cause any hinderance in future in selling or creating any third party interest in the HUF properties.

Siddharth Jain
Advocate, New Delhi
6386 Answers
102 Consultations

His citizenship of USA will not cause any hinderance in future in selling or creating any third party interest in the HUF properties.

Siddharth Jain
Advocate, New Delhi
6386 Answers
102 Consultations

The main condition on sale of an immovable property is that the building or plot should be sold to Indian residents or companies, or other NRIs or Persons of Indian Origin (PIOs). You cannot avail tax exemptions in India if you are selling the property to a foreign national or company. NRIs will have to apply to the Assessing Officer for certificate of non-deduction or lower tax deduction, so that the buyer deducts taxes only on the capital gains and not on the entire sale value. If tax has been deducted and you are eligible for long-term capital gains tax exemptions, then you can claim refund while filing your Income Tax Return. 

Ajay Sethi
Advocate, Mumbai
97617 Answers
7902 Consultations

- Yes, an NRI can become Karta of HUF , and can also file individual return as well. 

- Further , he can also sell , lease the HUF property 

Mohammed Shahzad
Advocate, Delhi
14778 Answers
225 Consultations

The Karta is the manager of the family. Traditionally, the Karta was usually the most senior male. In light of the legal changes enacted in 2005, females can now not only be co-parceners but also Karta’s. 

A Hindu Undivided Family (“HUF”) is a special feature of Hindu society, which today consists of a common ancestor and all of that common ancestor’s lineal descendants together with their spouses and unmarried children.

Therefore if your son is a coparcenar and is a lineal descendant, he can very well become Karta of the HUF property.

 

T Kalaiselvan
Advocate, Vellore
87818 Answers
2365 Consultations

The Karta has the power to transfer for value the joint family property thus binding all of the coparceners in the property if such transfer is made for legal necessity or for the benefit of the family (i.e. payment of debts for family business).

T Kalaiselvan
Advocate, Vellore
87818 Answers
2365 Consultations

You can revert with more questions in future if you have any.

T Kalaiselvan
Advocate, Vellore
87818 Answers
2365 Consultations

 He being an American Citizen can not be Karta of a HUF in India.

 

 

Krishna Kishore Ganguly
Advocate, Kolkata
27533 Answers
726 Consultations

If your son has the OCI certificate then he will be able to sell the said HUF property jointly with others.

Krishna Kishore Ganguly
Advocate, Kolkata
27533 Answers
726 Consultations

You shall have to arrange to obtain an Overseas Citizen of India certificate from the local Indian Consulate for pursuing the matter.

Krishna Kishore Ganguly
Advocate, Kolkata
27533 Answers
726 Consultations

If he is a hindu he can be a karta

Prashant Nayak
Advocate, Mumbai
32941 Answers
209 Consultations

Dear Sir,

  1. A Karta of an HUF can be a non-resident (provided he is a Hindu). However, the residential status of HUF might change under the Income-Tax Act, 1961. An HUF is said to be resident in India if control and management of its affairs is wholly or partly situated in India.
  2. A somewhat similar situation has been represented in the case of Sd. Gurmukh Singh Anand Huf And ... vs Sd. Suchacha Singh Anand.
  3. the documents required for change of khata in respect of landed property can be accessed throuh the following link.

DocumentsRequiredforKhataServices.pdf (kar.nic.in)

Thank You!

Anik Miu
Advocate, Bangalore
10427 Answers
121 Consultations

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