Regarding transfer of rights between karta and huf
Querist :
Anonymous
(Querist) 04 June 2021
This query is : Resolved
Can a HUF transfer its rent rights to its Karta and who will be taxed for such rent received?
kavksatyanarayana
(Expert) 04 June 2021
Consult a local CA or post this query on CAclubindia.com.
T. Kalaiselvan, Advocate
(Expert) 05 June 2021
Under the Indian succession laws, a Hindu Undivided Family (HUF) consists of coparceners and members. The eldest coparcener of the HUF is the Karta of that family, who acts as the head and is responsible for managing its affairs, legal and financial.
In the capacity of a manager of an HUF, a Karta enjoys this position by way of the law and no agreement of coparceners or members is required, for him to hold the position. While his role towards the other members is fiduciary, he is not really accountable to them.
It is important to note here that an HUF has both, members and coparceners. While the former becomes part of the HUF through matrimonial alliances, the latter become members by way of birth.
Owing to his fiduciary role in the family, the Karta is expected to take decisions for the general well-being of the family and its businesses.
a Karta can take financial decisions on behalf of the HUF.
Dr J C Vashista
(Expert) 05 June 2021
HUF shall be taxed through Karta for the rent received by him on behalf of undivided family.
ashok kumar singh
(Expert) 05 June 2021
agreed with views of earlier experts, therefore no further comments, so far.
thanks
ashok kumar singh
(Expert) 05 June 2021
Karta will be taxed for such rent receipts, as the rights has been assigned by the HUF to the KARTA to receive the rent. you may consult the CA for better understanding.
thanks
