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Nov,27,2025, 14:00 hrs
Who can have an HUF and Who can become a its karta?
Balwant Jain , Tax and Investment Expert
guest: I am a Karta of my HUF which was created when my son took birth in 1991. My Son got married in 2018 and is living separately with his wife in Baroda. I have one married daughter living with her husband. My wife is living with me. Now I want to expel my son from the HUF as I do not want to give him anything from HUF. What I should do, especially the dissolution of HUF & not giving him any money out of HUF.
:
As per Hindu Law your son is a coparcener of the HUF and has right to claim partition of the HUF property to get his share in the HUF property. HUF assets do not belong to one individual but to all the coparcener and members though members can not ask for a partition. You cannot disentitle your son from his share in the HUF property by any means. Though being a coparcener he has right to ask for a partition but he can not claim any shares in your self acquired property as a matter of right. Your son and married daughter both are coparceners as per the Hindu laws and thus are entitled to ask for partition of the HUF property. Even both are entitled to bequeath their share in the HUF property under a will. Even in case they do not leave a will, their share will devolve on their legal heirs.
guest: My father was karta of the HUF. I was a major when my father passed away intestate leaving behind me his only son (present karta) and my sister his only daughter (we both are twins) and my mother. My father passed away in 2024. the property which was in my father’s name (not HUF) devolved upon us three legal heirs as 1/3 share for each and the property was mutated immediately and we all became joint owners of the property. Now, my mother has filed for a partition suit for the HUF assets. My questions are as follows- 1. What are the partition rights of a widow in the Mitakshara law? 2. Is the widow a coparcener or a member? 3. Can a widow file for a partition against the consent of the coparceners (here it is me and my sister)? 4. Can she bequeath her share to an outsider to the exclusion of me and my sister’s consent?
:
A Widow is a not a coparcener of her husband’s HUF. She is only a member of the HUF. Only a coparcener can ask for partition of assets of an HUF. Since she is not a coparcener of the HUF she is not entitled to ask for a partition though she is entitled to get a share equal to her son as and when a partition takes place. She cannot file for partition of the HUF assets as she is not a coparcener of the HUF and does not have any share in the asset at present as there is a probability of a partition not taking place during her life time and thus she not getting any share in the HUF assets. For the same reason she cannot bequeath anything belonging to HUF either to outsider or even to family members.
guest: I am a retired army officer, about 72 years old. I have my HUF and wish to add money to it, keeping in mind the tax implications. I am the Karta of my HUF. If I request my elder brother, who is not a part of my HUF, to transfer money as a gift from his personal account to my HUF account:- (a) Will there be any Gift Tax on the money transferred? (b) Will the income generated by the HUF be taxed in the hands of the HUF? (c) Will the income generated by the HUF clubbed with my brother’s income, in which case again there will be no saving of tax, and thus the purpose of creating an HUF will be defeated
:
Gifts upto 50,000/- rupees from all the sources in a year are not to be treated as income of an individual as well as an HUF. However gifts received from certain specified relatives are not to be treated as income of the recipient irrespective of the quantum of such gifts. Only a member of the HUF is treated as relative of the HUF. Thus gift received by your HUF from your elder brother will be treated as income of the HUF if the aggregate value of gifts received by the HUF during the year from all the sources exceeds fifty thousand rupees and will have to be included in the income of your HUF as your brother is not treated as relative of your HUF. The income arising from such gift will be taxed in the hands of your HUF and not in the hands of your brother. Your brother does not have any tax liability in respect of the gift made to your HUF.
guest: My grandfather was holding an HUF account in Syndicate Bank paying regular taxes. He was the Karta. He has expired now and has left behind two grandsons, two daughters and a widow wife (my grandmother), he had a son (my father) who expired 2 years back. My question is who can now become the Karta and carry on the account transactions normally and what procedure to follow with the bank in this case.
:
After death of the Karta the senior most coparcener becomes Karta of the HUF by default. Senior most of your brothers and sisters can become Karta of the HUF. If the senior most coparcener is not willing to act as Karta any other coparcener can be appointed as Karta of the HUF. No major formalities are required to be complied with for this purpose. Though the next senior most member automatically becomes the new Karta of the HUF but at times, statutory authorities may require a declaration from the members of the HUF declaring the eldest coparcener as the new Karta of the HUF. Further, a declaration from the members of the HUF along with the death certificate of the old Karta may be mandated by banks in order to give effect to the change of name of Karta in the HUF`s bank account. Let me tell you that no succession certificate is needed in the case of an HUF on the death of the Karta.
guest: I am part of the HUF account of my Father, but I am not karta in that account. Can I apply for a new HUF with my wife and my daughter with me as Karta? I would also like to know if I could apply for a new one and continue with Father`s account?
:
As pre the Hindu laws an HUF can consist of maximum of four generations consisting of upto three generations of forefathers and next three generation of children. A person can be a member of more than one HUF. So while being a member of the HUF of your father, you can have your own HUF also consisting of yourself, your wife and your children including a girl child. Since more than one coparcener are necessary for constituting an HUF under the tax laws and since daughter are also treated as coparcener after the amendment of Hindu Succession Act in 2005 So your family consisting of your wife and the daughter will constitute an HUF.
guest: I have an H U F where I am karta. My brother also has hus HUF in which he is karta. My father also had a HUF in which he was karta. After his death I became karta of my father`s HUF. Since then I am karta of my father HUF and also of my own HUF. My queries are: Can I be karta of two HUF.? Can we distribute some amount in equal share from fathers HUF to our individual HUF.
:
Yes. A person can be a coparcener and Karta of more than one HUF. Any asset received on distribution of your father’s HUF becomes personal and individual asset of the recipient and can not treated as assets of recipient`s HUF. If you do so the same will be treated as gift by you to the HUF and the consequences will follow. Even for income tax purposes this will amount to a partial partition and income from assets so transferred shall continue to be clubbed with the income of the HUF.
guest: An HUF consisting of Father(Karta), a son and a grandson who is minor. Will the grandson be considered as a separate coparcener in this HUF? In the case of partition will there be three parts or two?
:
A person remains a coparcener of HUF of his own HUF, his father’s HUF his grandfather’s HUF and great grandfather’s HUF under the Hindu Law. So a grandson is considered as coparcener but he will not get full share but will get one third share from share of his father presuming his mother is alive.
guest: I have an HUF with my wife and three married daughters. I have no male issue. Can I distribute the HUF assets between my wife and married daughters? Please suggest.
:
Yes, After the amendment of Hindu Succession Act 1956 in 2005 daughters whether married or unmarried are treated on par with a son and are coparcener of the HUF. So your daughter are entitled to get their share in the HUF assets they way a son would have been entitled. So you can distribute the assets of your HUF amongst yourself, your wife and your daughters equally. Even an uneven distribution of the HUF assets can be made if all the members agree. The partition should be complete as regards all the assets and all the members for it to be recognised by the income tax department.
guest: I am a salaried employee working in a private company. My father had an HUF. After his death, I became the karta of that HUF . Now I live in an ancestral home in which I pay the rent in the name of my fathers HUF. So now I want to know if I can pay the rent for the huf in which I am the karta. And can claim the HRA. The huf is also filing the return and showing the rent income.
:
For income tax purposes HUF and its Karta are distinct and separate tax entities. There is nothing under Section 10(13A) and rule 2A which allows you the tax benefit in respect of the rent paid by you for the premises occupied by you. The law does put any ban on you paying any rent to any of your relatives for claiming the HRA benefit. Since the HUF is already filing the tax return showing the rental income I think there should not be any problem in you claiming the HRA benefits.
guest: Can you please let me know as to how the mutual funds & bonds of HUF get transferred after the demise of Karta?
:
After the death of the Karta the HUF continues and does not come to an end. After the death of a Karta of the HUF the eldest coparcener whether son or a daughter becomes a Karta of the HUF by default. You need to intimate about demise of old Karta and appointment of new Karta to the Mutual Fund house and the company where the investments stand in the name of the HUF. There is not need to transfer the holding after death of the Karta of an HUF.
guest: An HUF has a Karta, Wife, a Son and a Daughter. Karta has passed away. What is the present status of HUF? In what ratio should all coparceners get the assets? Will it make any difference if a will was made by him?
:
After death of a Karta, an HUF continues to exist and elder coparcener becomes Karta of the HUF by default. A person can bequeath his share in the HUF assets the way he wants under a Will. Please note that a coparcener is entitled to bequeath only his share in the HUF assets and not other assets of the HUF. So in case your father had made a will in respect of his share in the HUF assets, his share in the HUF will go the way as described in his Will. However, in case a coparcener does not bequeath his share in the HUF assets, a partition of the HUF is deemed to have taken place just before death of the coparcener and his share passes on to his legal heirs. So in case your father did not make any will his share in the HUF assets gets carved out of the HUF and is inherited by his legal heirs as per schedule of the Hindu Succession Act, 1956. This carving out of the share of your father in the HUF assets is treated as partial partition. Please note that the income tax laws do not recognize partial partition, the income in respect of the carved portion of the HUF assets will continue to be taxed in the hands of the HUF. As far as other coparceners are concerned they continue to remain members of the HUF. However, if you wish to fully partition the HUF after his death, you, your sister and your mother each will get an equal share in the HUF assets.
