Huf bank account
Bharati Agarwal
(Querist) 04 November 2014
This query is : Resolved
We had a bank account in the name of XYZ HUF wherein my husbandwas karta and myself(wife) and my two major-unmarried daugthers were mambers & cooparcenors.
My husbad, as karta, was signatory of the Bank Account.
My husband has expired recently.
I wish to continue the HUF and run it as earlier with myself and my two daughters.
Can we do it, Can we make myself or any of my daughter as Karta and make her saiganatory in Bank Account.Also please tell whether this reconstituted HUF without my late husband, can open a new bank account.
Please guide as I am advised diffrently by different lay people as well as by professionals and we are stuck up.
Regards.
ROHIT SHARMA
(Expert) 04 November 2014
1. The best source of getting such information is to approach the relative bank and they will guide you in this matter.
Bharati Agarwal
(Querist) 04 November 2014
The Bank has been approached.The Bank says to dissolve the HUF and produce a succession certificate so the credit balance can be disburse among the members as per succession certificate.But this is not true as we understand after amendment in Hindu Succession Act in 2005, an HUF shall exist and survive even after death of karta and surving female members can run it.we seek expert opinion on the issue...if available on this forum.....
M V Gupta
(Expert) 05 November 2014
Generally only the senior most male member can be the Karta of HUF. The Supreme court in CIT VS RM AR AR Veerappa Chettiar reported in (1970)76 ITR 467 held that when an existing HUF is reduced to only female members, it can still continue as HUF with one of the females as Karta. This is in view of the existence of a potential coparcener by adoption. A similar view was held by various courts in the past holding that widow of the deceased Karta or a female member of the HUF where sons are minors can act as Karta of the HUF and deal with the properties of the HUF. The HS (Amendment) Act, 2005 has done away with the discriminatory treatment meted out to females in the HUF and conferred on them status on pr with sons. Hence logically it should be held that in the absence of males in the HUF a female member can become Karta of the HUF. This gets support from the SC judgement sited above. Hence in my view the querist can act as the Karta and operate the HUF account until it is wound up or closed by her or the HUF is dissolved by agreement of all the female members.
