Change of Karta in HUF: Step-by-Step Process

Table of Contents

Change of Karta in HUF

Change of Karta in HUF: Introduction

Change of Karta in HUF is not a pre-determined process but occurs under certain circumstances. Upon the death of the Karta in a HUF, the Karta’s son or daughter, or grandchildren, being coparceners of the HUF, become the Karta.

  • Changing the Karta in a HUF requires completing steps such as preparing a new affidavit and NOC cum declaration, filing a PAN card correction form, and updating the new Karta’s appointment details with the bank and the Income Tax Department.

  • In India, a married person can act as the Karta in his father’s HUF, in addition to his own HUF. Hindu law and the Income Tax Act do not prohibit one person from becoming the Karta in two HUFs.

  • In order to ensure the security of the Hindu Undivided Family (HUF) property and the share of the coparceners and to prevent any possible government and non-government fraud, it is mandatory to have a valid reason for change in the Karta and to produce all legally valid documents related to the same.

Conditions for a change of Karta in HUF

To appoint a new Karta in HUF, the following things must be known;

  1. The new Karta of the HUF must be a coparcener, who can be the Karta’s major son, daughter, grandson, or granddaughter.

  2. If the Karta’s children are still minors, then in such a situation the Karta’s wife will fulfill all the responsibilities of the Karta but, she cannot become a coparcener. When the children become adults, they will have rights over all the assets of the HUF.

  3. If the Karta has no children and after the Karta, only his wife is left in the family, then in such a situation, the HUF will be dissolved, and the wife will have the right to all the assets of the HUF.

    The following reasons can lead to a change of Karta in HUF:
  • Death,
  • Physical or mental incapacity,
  • Going abroad,
  • Disappearance, or
  • Imprisonment by court order.

Change of Karta in HUF: Step-by-Step Process

A Hindu Undivided Family (HUF) already has a PAN card, and it needs to follow the steps below to change the Karta in PAN card, Income Tax and Bank account.

  1. Legal Evidence for the old Karta: For a change of Karta in HUF, a government legal document must be in place to prove that the change of Karta is necessary. This document is crucial for safeguarding the assets of the HUF and preventing fraud.
  • If the Karta is not alive then a ‘death certificate’ is required.
  • If the Karta is physically or mentally disabled, a ‘doctor’s certificate’ from a government hospital is required.
  • If the Karta has left the country permanently and has taken citizenship of another country, then a ‘renunciation certificate’ is required.
  • If the Karta is missing, a missing person ‘report’ is required to be filed at the police station.
  • If the Karta is found guilty and imprisoned by the orders of the court, then a ‘court order’ is necessary.
  1. Affidavit for Change of Karta of HUF after Death: For a change of Karta in HUF, a notarized new HUF affidavit cum declaration is made on a stamp of Rs. 100 with the consent of all the coparceners, keeping in mind Hindu Law. Only the Karta signs this new affidavit.

  2. NOC cum Declaration from coparceners: For a change of Karta in HUF, a NOC cum Declaration letter is prepared on the HUF letterhead, which is signed by all the coparceners of the HUF, stating the reason for the change of Karta and their consent for the appointment of the new Karta.

  3. Change of Karta of HUF in PAN card online: For a change of Karta in HUF PAN card online, the new Karta’s details must be updated in the Income Tax Department using the PAN card. The request for change or correction in PAN data application form [PAN CR-02] must be filed.

  4. Change Karta of HUF in Bank and demat account: For a change of Karta in HUF bank account, a request letter has to be given along with the PAN card, Aadhaar card and passport-sized photo of the new Karta, an NOC cum declaration letter, and a copy of the HUF PAN card (after correction) must be attached. After this, the contact details and signature of the new Karta will be updated in the bank and demat account of the HUF.

  5. Change of Karta of HUF in the Income Tax Portal: Once the PAN card correction is made and the new Karta’s details are updated, the data is automatically populated in the Profile section of the Income Tax Portal. No separate formalities or actions are required for change of Karta in HUF on the Income Tax Portal. The PAN card number of the HUF remains unchanged after the Karta change. You can change the communication address in the Profile section.

  6. Change Karta of HUF in GST (if applicable): If the HUF is registered in GST, then it is necessary to update the details of the new Karta by logging in to the online GST portal.

Documents required to change the Karta in the PAN card

To update the details of the new Karta on the Income Tax portal, an application form for change in PAN card must to be filled out and submitted. All these documents are attached in the process of Change of Karta in HUF.

  1. Request Form For Changes Or Corrections in PAN Data (PAN CR-02)
  2. Copy of HUF PAN card
  3. Death certificate of Karta
  4. Affidavit of New Karta
  5. NOC cum Declaration from coparceners
  6. Identity, address and date of birth proof of new Karta

All these documents can be submitted at the nearest PAN Card Centre or couriered to the Income Tax PAN Unit, Pune.

Format of Declaration and Affidavit for change of Karta of HUF:-

Declaration cum Affidavit for Change of Karta of Hindu Undivided Family (‘HUF’)

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