HUF
4 months ago
I inherited property from my father which is ancestral property. I have a huf bank account and pan Card where affidavit created for HUF is not registered in SRO and lost (I think it's not compulsory to get registered). I gave property to rent but tenant not paying rent to HUF account instead they're paying to individual account. I asked tenant to change' the rent credit to HUF account, they asked the documentation for HUF and I provided them E-KHATHA issued in Karnataka city muncipal council which mentioned HUF in front of owners name. Still they're rejecting to pay rent to HUF BANK ACCOUNT. Is E-KHATHA which shows HUF status in front of owner name is not sufficient to credit rent to HUF BANK ACCOUNT. Thanks (Tumkur, Karnataka)
Vidhikarya
Given that the house is bequeathed to you in your individual capability, and not to your HUF, the ownership of the house will vest in you, and not in the HUF. Therefore, the rental proceeds from the house cannot be shown as rental income of the HUF. But If you have inherited property from your father, along with the E-KHATA, provide the tenant with the PAN card issued in the name of HUF. If the affidavit has got lost, you can create a new one. Ensure that the E-KHATHA shows HUF status, take an official statement from the municipal council. Refer the tenancy agreement, if the agreement shows that the tenant is obligated to pay the rental amount in HUF account, the tenant cannot refuse to pay. We hope that our response is helpful to you.
The e-khata certificate issued by BBMP in Bangalore is an important and legal document comprising relevant details like the property owner’s name, area, location, and tax details. It verifies property ownership and provides legal recognition of the property for various purposes. In Karnataka state, it is mandatory to have an e-Khata certificate for the lands/properties owned by a person. It is quite sufficient to prove that the property belongs to HUF. Moreover, if the tenancy/rent agreement provides a clause for payment of rent by the tenant to a bank account belonging to HUF, the tenant cannot raise any objection or deny to credit the rent amount in the assigned bank account. A dispute between a landlord and tenant is resolved under the state-specific Rent Control Act, i.e, the Karnataka Rent Control Act, 1999 under which a Rent Controller or Addl Rent Controller is appointed to deal with the dispute arising out of a rent agreement between the parties. In the given situation, serving a legal notice to the tenant, you can also file an application explaining your grievance before the concerned Rent Controller to resolve the issue amicably.