CA Final Download the best Free CA FINAL android app for cracking your exam! Download Now
They are the best ca final faculties in India. They have produced many toppers & rank holders. Their video classes are available only here -
CHECK VIDEO CLASSES HERE

Who takes over when Karta of a HUF dies?

Who takes over when Karta of a HUF dies?

What is HUF?

We have heard and used the term HUF in income tax; today let’s understand what exactly the HUF is.

HUF is simply ‘Hindu Undivided Family’. Though it has not been specifically defined in the income tax act, the act recognizes the HUF as a separate taxable entity (just like an individual, a company or a firm). HUF can file an Income Tax Return. HUF can be formed by a group of individuals, who are descendants from a common male ancestor, of the same Hindu family.

The senior most male member of the HUF is called ‘karta’. The family of the karta is members of the HUF – his wife, his children, their wives and their children, including unmarried daughters are members of HUF. Male member of the HUF are called co-parceners and a co-parcener can demand partition of the HUF. Its important to know about co-parceners because the HUF can only be taxed as a separate entity if it consists of at least 2 co-parceners.

Who takes over when Karta of a HUF dies?

  • Upon the demise of the Karta, who takes over?

Upon the demise of karta, the eldest male member of the family becomes the karta of the HUF. Even where the deceased karta has a surviving wife, his eldest son or the eldest male member of the family becomes the karta.

  • What if the eldest son is an NRI?

A karta of an HUF can be a non-resident (provided he is a Hindu). However, the residential status of HUF might change under the Income-Tax Act, 1961. An HUF is said to be resident in India if control and management of its affairs is wholly or partly situated in India. The mere fact of absence of karta from India does not make the family (HUF) a non-resident (unless the decisions concerning the family are taken outside India).

Who takes over when Karta of a HUF dies?

CAKARt

CAKART

At CAKART www.cakart.in you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visitwww.cakart.in and chat with our counsellors any time. We are happy to help you make successful in your exams.

Leave a comment

Your email address will not be published. Required fields are marked *