Huf
This query is : Resolved
06 May 2012
I HAVE A QUERY REGARDING DEATH OF KARTA OF HUF. WHAT WILL BE THE STATUS OF HUF IF THE KARTA OF HUF DIES?
THERE ARE FOLLOWING MEMBERS IN THE HUF:
1. KARTA (HIMSELF) 2. HIS WIFE 3. HIS TWO MAJOR SONS 4. THEIR WIVES 5. GRAND CHILDREN.
THE TWO MAJOR SONS ARE ALSO KARTAS OF THEIR RESPECTIVE HUFs. WHAT WILL BE THE STATUS REGARDING EXISTENCE OF THEIR HUFs AS WELL AS THE ORIGINAL HUF, OF WHCH THEIR FATHER IS KARTA AND HE HAS DIED ?
THERE ARE FOLLOWING MEMBERS IN THE HUF:
1. KARTA (HIMSELF) 2. HIS WIFE 3. HIS TWO MAJOR SONS 4. THEIR WIVES 5. GRAND CHILDREN.
THE TWO MAJOR SONS ARE ALSO KARTAS OF THEIR RESPECTIVE HUFs. WHAT WILL BE THE STATUS REGARDING EXISTENCE OF THEIR HUFs AS WELL AS THE ORIGINAL HUF, OF WHCH THEIR FATHER IS KARTA AND HE HAS DIED ?
Iqbal Singh Grover
(Expert)
07 May 2012
An HUF continues to exist for 4 generations.. It doesnt die even if the Karta dies.
In your case, there will b 3 HUFs even after the death of the father.. His eldest son will continue his father's HUF.. So now he will be a karta of 2 HUFs.. His father's HUF and his own HUF..
Tax returns have to be filed for all 3 of them in case they have incomes..
Alternately, you may divide the capital of the father's HUF into the remaining members of his HUF..
I would like other experts to comment on this. Please correct me if I am wrong..
In your case, there will b 3 HUFs even after the death of the father.. His eldest son will continue his father's HUF.. So now he will be a karta of 2 HUFs.. His father's HUF and his own HUF..
Tax returns have to be filed for all 3 of them in case they have incomes..
Alternately, you may divide the capital of the father's HUF into the remaining members of his HUF..
I would like other experts to comment on this. Please correct me if I am wrong..
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CA BIREN SHAH
(Expert)
08 May 2012
Agree with Iqbal Sir..
Prakash Kochar
(Expert)
23 May 2012
Agree with Expert except on suggession for division of capital, among other members. If there is partial partition income of the receipients from divided capital will be treated as income of HUF, untill the complete partition of family assets is effrected and recognised u/s. 171 of IT Act.
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Iqbal Singh Grover
(Expert)
23 May 2012
By dividing capital, I meant full division and not partial.. Thanx Prakash for clarifying..
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