HUF creation including NRI persons
2 months ago
I want to create HUF, I am having NRI SON, two Gandsons( all US citizen) and a Daugher (Canadian PR). How to create HUF?. Is it possible to cerate one HUF me as Karta and another by my son as Karta?
A.Dear Client,
In a Hindu Undivided Family (HUF), the position of the Karta is crucial. While a HUF cannot have two Kartas simultaneously, the duty of management can be performed by another Coparcener in specific circumstances. A HUF can be formed with just two members, one of whom is a coparcener. However, for the entity to be taxed as an HUF, it should have at least two coparceners.
Despite being a separate legal entity, similar to a company or an individual, a HUF can open multiple bank accounts without any tax implications.
Upon the death of the Karta in a HUF, the general practice is for the senior most coparcener to assume the role of Karta. Under Hindu Law, only a coparcener has the eligibility to become the Karta of an HUF. This succession ensures the continuity of the HUF's management and affairs.
In a Hindu Undivided Family (HUF), the position of the Karta is crucial. While a HUF cannot have two Kartas simultaneously, the duty of management can be performed by another Coparcener in specific circumstances. A HUF can be formed with just two members, one of whom is a coparcener. However, for the entity to be taxed as an HUF, it should have at least two coparceners.
Despite being a separate legal entity, similar to a company or an individual, a HUF can open multiple bank accounts without any tax implications.
Upon the death of the Karta in a HUF, the general practice is for the senior most coparcener to assume the role of Karta. Under Hindu Law, only a coparcener has the eligibility to become the Karta of an HUF. This succession ensures the continuity of the HUF's management and affairs.
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A.Dear Client,
While a HUF cannot have two Kartas, the duty of management can be performed by another Coparcener in given circumstances. A HUF can be formed with just two members one of whom is a coparcener. But for an entity to be taxed as a HUF, it should have at least two coparceners. HUF like any other company or individual or partnership is a separate legal entity. Open as many accounts in the Bank as you wish in the name of HUF. There are no tax implications. After the death of the Karta of a HUF, generally, the senior most coparcener becomes the Karta of the HUF. Under Hindu Law, only a coparcener can become Karta of an HUF.
While a HUF cannot have two Kartas, the duty of management can be performed by another Coparcener in given circumstances. A HUF can be formed with just two members one of whom is a coparcener. But for an entity to be taxed as a HUF, it should have at least two coparceners. HUF like any other company or individual or partnership is a separate legal entity. Open as many accounts in the Bank as you wish in the name of HUF. There are no tax implications. After the death of the Karta of a HUF, generally, the senior most coparcener becomes the Karta of the HUF. Under Hindu Law, only a coparcener can become Karta of an HUF.
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