A female can become karta of HUF

Apr 09 2006, 00:00 IST
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Can a female also be a karta of HUF. My father was the karta of our HUF. Now he is no more. Can my mother become the karta?
Anagha Deshpande

Yes, a female can become a karta, but only when the male members are minors or are not in a position to manage the affairs and give a declaration to that effect and seek the permission of the Department to allow the female to manage. Champa Kumari Singhi v Revenue (1962) 46ITR81 (Cal).

Moreover, when an existing HUF is reduced to only female members, it can still continue as an HUF with one of the females as a karta. This is in view of the existence of the potential coparcenary as any widow may, in future, induct a coparcener into the family by adoption. CIT v RM AR AR Veerappa Chettiar (70) 76ITR467 (SC).

(1) Under PPF rules, no account can be opened in the name of HUF. However, u/s 80C of the IT Act 1961, an HUF can have a PPF account in the name of any member. Suppose Mr A, the karta, invests Rs 50,000 each out of HUF funds in the PPF accounts of two members of the family Mr X and Mr Y (both being major sons of Mr A), can the HUF claim deduction of Rs 1,00,000 u/s 80C in its own case?

If for the purpose of PPF regulations the accounts of Mr X and Mr Y are treated as their individual accounts, can they each further invest Rs 20,000 each and claim deduction u/s. 80C in their individual cases?

Whether the aforesaid investments would be in violation of PPF rules which w.e.f. 13.05.05 bar HUF to have any account in its name?

(2) Mr A is assessed to tax in his individual capacity. He has deposited Rs 70,000 in his PPF account. He also desires to deposit Rs 30,000 in the PPF account of his major son Mr B and wants to claim deduction of Rs 1,00,000 u/s 80C of the Act in his own (Mr A) case. Of course, in the aforesaid situation Mrs A or Mr B would not claim deduction u/s 80C in her/his case in respect of the said deposit of Rs 30,000. Can Mr A do so and claim deduction u/s 80C up to Rs 1,00,000?

The answers to all your queries are in the affirmative. The ITA is independent of NSO Rules. In other

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