Karta (Manager) of HUF has sole authority over the HUF account and also over every transaction on behalf of the HUF account, made by each member of the family. Therefore, it is necessary to appoint a new Karta to allow operation in the account after the death of the Karta to allow further operation in the same account.
When the Karta of the HUF has expired then the bank account remains the same subject to submission of declaration cum no objection letter to the bank from the new Karta and co-parceners . The letter shall provide the following information.
- Request to delete the name of deceased Karta from the bank’s record (type and account number to be specified) with a copy of the death certificate.
- Name of newly appointed Karta to be mentioned and his relationship with the deceased Karta.
- Request to register and update the name of the new Karta of the specified HUF account in place of the deceased Karta and allow him to operate the said HUF account.
- No objection to the appointment of (Name of the member) new Karta of the HUF account
- The declaration cum no objection letter from co-parceners for deletion of the name of existing Karta and appointment of New Karta to be signed by the new Karta and all the major co-parceners of the family.
In case of a larger balance in the HUF account many banks obtain affidavit cum indemnity from surviving members and legal heirs with two guarantors confirming their acceptance to one of the members as a new Karta. Banks shall allow the new Karta to continue to operate the existing account based on such documents, in HUF accounts. A similar procedure is to be followed in cases where an account is to be closed and the balance in the account is to be paid to the new Karta. Document requirements may be different in different banks.
The Karta is traditionally the senior male coparcener of the HUF. When Karta of the HUF dies, the next senior male member takes over as Karta. If the senior most member gives up his right, a junior coparcener can become Karta of the HUF, with the consent of all other major co-parceners as held by Supreme Court in Narendra Kumar J. Modi Vs CIT (1976) 105 ITR 109 (SC).
As per Hindu Succession (Amendment) Act, 2005 the daughters of a family who are governed by Mitakshara Law, also become co-parceners in the HUF property. The above amendment further gave the women the right of survivorship via amended Section 6 (1) (a) and (b) of the Hindu Succession Act, 1956. This amendment gave them equal rights as the sons.
A HUF never dies. After the death of the Karta, normally the eldest coparcener becomes the Karta. Therefore, the name of the Karta has got to be replaced in the records of the bank. The deposit can be continued and closed on maturity. If it is an SB or Current account, the deposit amount can be withdrawn keeping the minimum balance in the account. The HUF account can be closed after dissolving the HUF. A HUF can only be dissolved after the full partition of the property. For this, all the co-partners and Karta must execute a deed of partition and distribute properties amongst the members. For this, the family must execute a deed of partition and distribute properties amongst the members. All family members must be part of the deed. The deed should spell out all the properties that are part of the HUF, which family members are dividing among themselves. The division of assets must be in line with the provisions of the Hindu Succession Act. The Income-tax Act does not recognize a partial partition dissolution of HUF. Partition means ‘full partition’. Once the partition of HUF is complete, it will cease to exist. If there is no partition, the income tax department will continue to assess the entity, and the family members will need to file returns.
Related article:
Very simple n effective advice.It will help to solve a lot of problem being faced by the coparceners of an HUF having bank account and the karta has died.
Thank a lot
sir,what will happen if after death of male karta there is no male coparcener in HUF? Will widow get Status of Karta and will she be authorised person. and in this HUF only girls are there and all are married so will they be treated as coparceners and will they get share from bank balance of deceased karta(their father)?
A Hindu widow is a member of her husband’s HUF, she is not a coparcener. As only a coparcener can become a karta, she cannot be the karta of her husband’s joint property.However,Courts in India have given diverse views regarding this: C.P. Berai v. Laxmi Narayan[6] – It was held that held that a widow could be a karta in the absence of adult male members in the family.
We are having 68 members in joint family who are the lagal heirers of the family
A Hindu Undivided Family (HUF) is a family made up of all persons lineally descended from a common ancestor, and also the wives and daughters of the male descendants. The term legal heir is commonly used to refer to a person who succeeds to property, either by will of the concerned individual or law. In the absence of a WILL, the property of a male Hindu dying intestate shall first go to the heirs, being the relatives specified in class I of the Schedule of Hindu Succession Act which includes Son, Daughter, Widow, Mother, Son of a pre-deceased son, Daughter of a pre-deceased son, Son of a pre-deceased daughter, Daughter of a pre-deceased daughter, Widow of a pre-deceased son, Son of a pre-deceased son of a pre-deceased son,Daughter of a pre-deceased son of a pre-deceased son, Widow of a pre-deceased son of a pre-deceased son.
sir ,
in my case , I have 1 elder brother and 1 elder sister, after death of my father my elder brother became karta of my father’s , he is now settled in australia . so it is difficult for him to oprate this file , I also have have formed my HUF, so with the authorization of my elder brother, can i be karta of my huf and my fathers huf ?
In the presence of a senior male member, a junior male member cannot be the Karta. But if all the coparceners agree,(in your case your elder brother and sister) a junior male member can be a Karta. However, Coparceners may withdraw their consent at any time. With regard to your query on informing the bank of a change in Karta, usually, the bank would only have to be informed of a change in the name of the Karta or signatories for the operation of the bank account, which is recorded with the bank.
Under Hindu law, there can be a HUF within a HUF. Therefore, a son or brother can establish his own independent HUF (with his wife and children and further lineal descendants) while he continues to be a member of his father’s HUF.
The Co-parceners of a HUF will continue as co-parceners until the HUF is partitioned or until the co-parcener releases all his/her undivided right, interest and share in the HUF in favour of the other co-parceners under a duly executed deed of Release,
hie m looking for urjent help
our bank managers is trying to close our A/c wch is runing since 30yrs where as main karta is expired? hench in this case Huf karta wil be going to transfer on same a/c or he has to close a/c ?? n open mew cz bank manger is not coperarting to run same a/c any help or guidance on same plz??
Whenever name of the Karta is changed, the specific HUF account remains in the same name. The Bank Account will be allowed to be operated by the new Karta on submission of death certificate of deceased and declaration cum no objection letter to the bank from all the major coparceners. The request for deleting the name of existing Karta and adding the name of the new Karta in the banks records also require his relationship with the deceased and KYC details of new Karta.Document requirement may be different in different banks. The book of instruction of the bank gives the details of documents to be obtained while changing the name of Karta.
https://bankingschool.co.in/legal-and-regulatory-aspects-of-banking/the-status-of-karta-and-women-in-huf-explained/
IN CASE WHERE MALE MEMBER OF HUF GOT EXPIRED AND HIS SON IS MINOR, SO IN THAT CASE WIFE OF KARTA HOLDS THE POSITION OF KARTA OR NOT
If the minor is the sole coparcener of HUF, the mother of the minor coparcener could act as the legal guardian of the minor and look after the role of Karta, on behalf of the minor, in her capacity as a legal guardian of the minor.Please remember daughters are also coparceners in their own right in the same manner as sons. Major daughter can also be made as Karta
I have an HUF a/c in my name and my four daughters are copacernors I don’t have a son The surname of my daughters were ch-angled after their marriage should I get their names changed in yThe account and how
No need to change the surname of the coparcener after their marriage. To avoid any confusion, they can also mention their new name (after marriage) and below that write ‘nee’ followed by the pre-marriage name.In case your bank insists you may show them marriage certificate (copy may be attested by you).
Can the wife of my deceased brother be appointed Karta of his HUF. He has 2 married daughters but no male member. Experts are giving differing openions.
A Hindu widow is a member of her husband’s HUF, she is not a coparcener. As only a coparcener can become a karta, she cannot be the karta of her husband’s HUF. However, when the adult coparcener had died and there was no coparcener surviving or where the sole coparcener was a minor, courts have held that the HUF does not come to an end and the mother of the minor coparcener could act as the legal guardian of the minor and look after the role of karta, on behalf of the minor, in her capacity as legal guardian of the minor.
The Hindu Succession (Amendment) Act, 2005 which came into force from September 9th September 2005 removed gender discrimination by giving equal rights to daughters as sons.The daughters become the coparceners of their father’s families on birth in the same manner as sons and have the same rights as sons in the family properties.
I am youngest son of the family And I have 2 married elder sisters . My father is Karta of HUF . Who will become Karta after him .
You can become Karta of HUF provided no objection and declaration form signed by both of your sisters.
On the demise of a male Karta, it is now possible for a daughter to become a Karta of the HUF under the circumstance where she is the eldest adult coparcener in the family. However, you can be Karta of the HUF with the consent of your sisters.
Sir I have one HUF Fixed Deposit now karta expired Two months Back, can you know how to settle the claim HUF fixed Deposit
A HUF never dies. After the death of the Karta, normally the eldest coparcener becomes the Karta. Therefore, the name of the Karta has got to be replaced in the records of the bank. The deposit can be continued and closed on maturity. If it is an SB or Current account, the deposit amount can be withdrawn keeping the minimum balance in the account.HUF account can be closed after dissolving the HUF. A HUF can only be dissolved after the full partition of the property. For this, all the coparcener and Karta must execute a deed of partition and distribute properties amongst the members. For this, the family must execute a deed of partition and distribute properties amongst the members. .All family members must be part of the deed. The deed should spell out all the properties that are part of the HUF, which family members are dividing among themselves. The division of assets must be in line with the provisions of the Hindu Succession Act. The Income-tax Act does not recognize a partial partition dissolution of HUF. Partition means ‘full partition’. Once the partition of HUF is complete, it will cease to exist. If there is no partition, the income tax department will continue to assess the entity, and the family members will need to file returns.