Who takes over when Karta of a HUF dies?

In continuation of our post on what is an HUF – which you can read here, today let’s answer some common questions about who takes over the HUF when the Karta passes away

  • Upon the demise of the Karta, who takes over?

Upon the demise of karta, the eldest male member of the family becomes the karta of the HUF. Even where the deceased karta has a surviving wife, his eldest son or the eldest male member of the family becomes the karta.

 

  • What if the eldest son is an NRI?

A karta of an HUF can be a non-resident (provided he is a Hindu). However, the residential status of HUF might change under the Income-Tax Act, 1961. An HUF is said to be resident in India if control and management of its affairs is wholly or partly situated in India. The mere fact of absence of karta from India does not make the family (HUF) a non-resident (unless the decisions concerning the family are taken outside India).

 

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