With due respect I would request you to clear my doubt for the following points:
1. Being a state government employee of West Bengal can I be a Karta of a HUF whereas others may be my wife and Son.
2. If there is no legal problem in forming HUF, Can the HUF be registered as ARN( for Mutual Fund distribution). Wheather the earning from the Mutual fund (in the account of HUF) may create any legal problem in my service life ?
As eldest male member of your family you will be regarded as karta of your family consisting of yourself, wife and son. This is a status conferred on you automatically under your personal Law (Hindu Law). It does not conflict with your being an employee of West Bengal Gov.
As regards Contributions to Mutual Funds in the name of HUF, it depends on the rules of the MF for the relevant scheme. If under the rules contributions in the name of HUF are permitted, you may contribute and the dividends and capital gains, if any, arising out of such investments will not be regarded as your personal income for tax purposes.
You cannot paly the role of both Karta and State Government Employee at a time. Its better to do business in the name of any of your family member!
HUF is represented by the Karta. For engaging in the business of Mutual Fund distributorship, kyc has to be in the name of HUF and Karta as well. Now how come a Karta of HUF engaged as a mutual fund distributor (ARN) and doing Government job at the same time! Therefore it was suggested to do business in the name of other family members by constituting OPC or proprietorship or any other.