A person, karta of two hufs
Madhu Mittal
(Querist) 13 June 2017
This query is : Resolved
Respected Sirs,
Whether a person can be Karta of two Hufs in following given situation?
There is one(Ist) Huf coparceners being Karta named K, K’s son N, K’s daughter in law M, and K’s daughter P. This Ist Huf was made in 1990. N’s son J, N’s another son L became coparceners when they born in family in 1992,1993 respectively. K’s daughter P married in 1994.
Simultaneously, There is another (2nd or smaller) HUf at the same time Karta being N (son of K), coparceners N's wife M, N's son J and N's another son L. This (2nd) HUf was made in 1994.
Karta of Ist Huf i.e K died in 2002.
Can N being his only son can become Karta of Ist Huf, while keeping him Karta of 2nd Huf ?
Thanks with Regards,
Sankaranarayanan
(Expert) 28 June 2017
Come with your personal query, we ready to give our suggestions, for academic query better to refer books and relevant materials
Madhu Mittal
(Querist) 29 June 2017
Respected Sir,
Thanks for attending my query. This query is upon facts, here in IInd Hufs N's wife is myself.
Thanks with Regards,
Madhu Mittal
(Querist) 29 June 2017
Respected Sir,
Here death of Karta of Bigger Huf is in 2002, so it is unclear to me whether Daughter P of Karta of bigger Huf will be treated as member of bigger Huf or not, as amendment in 2005 about daughter. So If Daughter is still member, no problem, a person can be Karta of two Hufs. But if daughter can not be regarded as member of bigger Huf as Karta of bigger Huf died in 2002, then all the members of two hufs will be same, so in that situation whether a person can be Karta of two Hufs, having same members or two hufs has to be merged ?
Thanks with Regard, it is practical problem, I request all learned members to guide.
Madhu Mittal
(Querist) 29 June 2017
Respected Sirs,
Why so late query when Karta of Bigger Huf died in 2002. Till March 2016, income of Bigger Huf is about 1.20 lac so that of smaller Hufs and my husband used to work as Karta of both Hufs. But in March 2017 the total income of two Hufs is going to be more than 2.5 lakhs, so if there is some thing wrong in keeping two Hufs, Karta of Huf will be accused of not depositing income tax properly. That is why it is being asked, it is not academic query.
Thanks with Regard,
Hemant Agarwal
(Expert) 01 July 2017
1. Each HUF, is a "Separate Legal Entity", and is assessed uniquely and income of Two different named HUF cannot be clubbed with each other, UNLESS "merged" or "deregistered".
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Madhu Mittal
(Querist) 01 July 2017
Respected Sir Hemantji,
Thanks for guiding, What I have understood that there will not be automatic merger and automatic dissolution of Bigger Huf even though members/coparceners are same.
Bigger Huf’s Karta’s married daughter P will not be member/ coparcener now as karta died in 2002, and amemdment came in 2005, and amendment is for daughter and not for sister.
So now Bigger(Ist) Huf Has Named K Huf and its Karta is N, and member/coparcener are his wife M, and his sons J and P.
IInd Huf Has Named N Huf, Karta N, members/coparceners are his wife M, and his sons J and P.
Please guide once more, whether I am correct or wrong.
Hemant Agarwal
(Expert) 03 July 2017
1. FIRSTLY & LEGALLY, there is nothing such as "automatic merger /dissolution". All such "merger /dissolution", has to be conducted by following due procedure of law.
2. SECONDLY there is nothing classified as "bigger or smaller" HUF's. The Income Tax dept., does not recognize things like "bigger or smaller" HUF's. Each HUF is a separate entity, for any & all purposes.
3. Amendment regarding "daughters right over property" is relating to individual persons daughter. An HUF (being an entity) CANNOT have any daughters.
4. KINDLY prefer to have a "one-to-one" consultation session with a competent Chartered Accountant, for further accounting technicalities.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Madhu Mittal
(Querist) 03 July 2017
Respected Sir Hemantji,
Thanks for accepting my request and guiding a lot further. For advise consultation with a competent CA sir, I want to apprise you I come here after using all my options available, and when there is no clear guidance from them.
Any other expert Sirs, if want to guide more, are thanked in advance.
Madhu Mittal
(Querist) 31 July 2017
Respected Sirs,
please guide more, I could not understand why I am being deprived of guidance of experts. Thanks in advance with regards.
