Hello everyone,
I have come across the below case. An individual XYZ, created his HUF say XYZ HUF; members included himself, wife, and two sons.
Subsequently, the father and elder son passed away thus making the second son as the karta. With respect to the remaining members, request your guidance on the below queries
1. Will the widow and daughters of the late elder son be considered as members / coparceners of XYZ HUF? What are their rights in XYZ HUF?
2. Will the wife and daughter of the second son be considered as members / coparceners of XYZ HUF? What are their rights in XYZ HUF?
3. XYZ HUF has some shares in physical format. Name of the shareholders are indicated as XYZ and Mrs. XYZ. Can the second son transfer the shares in his own name and treat such transfer as sell? The proceeds of such transfer cum sale will be deposited in the HUF bank account and used for daily expenses of the joint family
4. I read somewhere that the present Karta has to prepare an affidavit on a Rs. 100 stamp paper indicating that he is now the karta of the HUF. Where, how and whom do we inform of any changes in the addition / deletion of HUF members / coparceners? Also please feel free to share formats of affidavits available if any.
Fell free to add any other comments / issues on the above subject matter.
Let me your inputs on the above. Thanking you all in advance for your replies.
CA, CFE Chandresh Sanat Jatania
CAclubindia
