HUF Business

Others 706 views 2 replies

Pranay Kothari

415 Points Joined November 2008

Sir I have an query that on demise of a person the business carried on in the name of HUF will still continue despite of the death of the Karta for the current year . So henceforth after the demise of the Karta who will be the signatory authority for carrying on the HUF Business for that year.

Can the business be carried on & on or is it required to be Shut down?

If the Karta who died has Three sons who will take incharge of the family business, Is any will required by the Karta giving the power of attorney to any of his son?

Please Put Light on The Above Case

Thanking You In Advance

Replies (2)

Ketan

Services

120 Points Joined September 2008

The eldest son / daughter of the Family will be the new karta of the HUF and incharge of the HUF... unless you disolve the HUF......... You will need to do the formalities with the Banks and other department for the change of Sign giving the Death certificate.

Kailash Sharma

CA- Final Student

148 Points Joined April 2009

Yes Mr. Ketan is right.

In absence of any WILL Eldest son/ Daughter will be considered as Karta after the death.

If any special conditions in Distribution of property to be given then only WILL is required otherwise Whole Empire or property will be divided in Equal Share among all childrens of Karta.

And about Bussiness it can go on and on with disturbing current status of business...

& New Karta can decide whether HUF to be Liquidate or Continued in proper discussion with the CO-Parceners..