11 March 2017
My father was the karta in an HUF of which the bank account was opened. Myself, sister (elder & married) & mom were the coparceners. Recently my father passed away. Bank says this HUF has to be closed & another HUF account has to be opened with a new karta (either mom or myself) only then the funds would be transferred from the old HUF account to the new HUF account. Bank also says a new PAN of the HUF has to be prepared in opening the account & the old PAN will not work in the opening of new HUF account. I consulted few CAs & their opinion was a new PAN is not required as only the karta(my father) has passed away & HUF is not dissolved. With the same PAN you can open another HUF bank account with a new karta(either myself or mom). Few say that there are some legal formalities to be completed with the income tax & they have to be informed about the demise of the karta(father) & update them about the new karta(myself or mom). They can chanhe the PAN after updating their records. I am really confused as to whom should I believe & what should I do. Please guide me. Thank you.
CAclubindia
