HUF
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 March 2011
Can Husband and Wife create HUF? There is no childrens
24 March 2011
Yes they can.
For detailed info on HUF see below links---
https://www.caclubindia.com/share_files/all-you-want-to-know-about-huf-27905.asp
https://www.caclubindia.com/forum/details.asp?mod_id=107806&offset=1
For detailed info on HUF see below links---
https://www.caclubindia.com/share_files/all-you-want-to-know-about-huf-27905.asp
https://www.caclubindia.com/forum/details.asp?mod_id=107806&offset=1
26 March 2011
Why not!! they can create HUF
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2011
PLEASE ANY BODY CAN GIVE SOLUTION FOR THE FOLLOWING QUERY IMMEDIATELY
KARTHA AND HIS WIFE CREATED HUF. THEY RECEIVED PAN ALSO. IF ASK FOR OPENING AN ACCOUNT WITH BANK. BANK OFFICIALS REFUSING THAT WIFE CANNOT CO-PARCENER SO IT IS NOT POSSIBLE. IS THERE ANY CLEAR GUIDELINES TO PROTEST THIS OBJECTION.
KARTHA AND HIS WIFE CREATED HUF. THEY RECEIVED PAN ALSO. IF ASK FOR OPENING AN ACCOUNT WITH BANK. BANK OFFICIALS REFUSING THAT WIFE CANNOT CO-PARCENER SO IT IS NOT POSSIBLE. IS THERE ANY CLEAR GUIDELINES TO PROTEST THIS OBJECTION.
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2011
PLEASE ANY BODY CAN GIVE SOLUTION FOR THE FOLLOWING QUERY IMMEDIATELY
KARTHA AND HIS WIFE CREATED HUF. THEY RECEIVED PAN ALSO. IF ASK FOR OPENING AN ACCOUNT WITH BANK. BANK OFFICIALS REFUSING THAT WIFE CANNOT CO-PARCENER SO IT IS NOT POSSIBLE. IS THERE ANY CLEAR GUIDELINES TO PROTEST THIS OBJECTION.
KARTHA AND HIS WIFE CREATED HUF. THEY RECEIVED PAN ALSO. IF ASK FOR OPENING AN ACCOUNT WITH BANK. BANK OFFICIALS REFUSING THAT WIFE CANNOT CO-PARCENER SO IT IS NOT POSSIBLE. IS THERE ANY CLEAR GUIDELINES TO PROTEST THIS OBJECTION.
28 July 2024
The situation where a bank refuses to open an HUF account because the wife of the Karta cannot be a coparcener is a common issue, and understanding the legal and procedural guidelines can help address it.
### **1. Understanding HUF Structure**
- **Karta and Coparceners:**
- **Karta:** The head of the HUF, typically the senior-most male member.
- **Coparceners:** Generally include the Karta's descendants (sons, grandsons, etc.) and, in certain cases, may include daughters if the HUF is governed by modern legal principles or specific laws.
- **Wife’s Role:** In traditional Hindu law, a wife is not a coparcener. However, the wife can be a member of the HUF and benefit from the HUF’s assets. Recent legal amendments and interpretations have expanded the roles of female members in certain contexts, but traditionally, wives are not coparceners.
### **2. Bank’s Refusal and Legal Standing**
**Bank Guidelines and Legal Framework:**
- **Banks’ Policies:** Banks generally follow the guidelines set by regulatory authorities like the Reserve Bank of India (RBI) and also adhere to their internal policies for opening accounts.
- **HUF Account Rules:** According to RBI guidelines and general banking practices, an HUF account must have a Karta and coparceners. Traditional legal understanding suggests that a wife cannot be a coparcener but can be a member.
**Legal Position:**
- **Karta and Coparceners:** The bank's refusal may be based on traditional interpretations, but legally, the account can be opened with the Karta and coparceners as per the traditional HUF structure. The bank should recognize the Karta's position and the members of the HUF according to law.
### **3. Steps to Address the Bank’s Objection**
**1. Present Legal Documentation:**
- **HUF Formation Document:** Provide the bank with the documents showing the formation of the HUF, including the PAN card, HUF deed, and any other relevant legal documents.
- **Identification of Karta:** Show proof that the Karta is recognized legally and is the head of the HUF.
**2. Clarify the Role of the Wife:**
- **Member Status:** Explain that while the wife may not be a coparcener, she is a member of the HUF, and the account should be opened in the name of the HUF, with the Karta as the authorized signatory.
**3. Reference Banking and Legal Guidelines:**
- **RBI Guidelines:** Reference RBI guidelines related to the opening of HUF accounts. These guidelines typically do not specify the exact roles of coparceners but focus on the HUF structure and Karta’s authority.
- **Legal Precedents:** If necessary, refer to legal precedents or consult with a legal professional for guidance on handling the bank’s objections.
**4. Escalate if Necessary:**
- **Bank’s Grievance Redressal:** If the bank persists in its refusal, escalate the matter to the bank’s grievance redressal mechanism or higher management.
- **Regulatory Authorities:** In case of persistent issues, consider approaching regulatory authorities or the Banking Ombudsman for resolution.
### **4. Model Application for Account Opening**
Here’s a model approach to applying for an HUF account:
**Subject:** Request for Opening of HUF Account
**Dear [Bank Manager’s Name],**
I am writing to request the opening of a bank account for our HUF, [Name of HUF]. The Karta of the HUF is [Name of Karta], and the HUF has been duly constituted and recognized with a PAN card.
**Documents Attached:**
- HUF Formation Deed
- PAN Card of HUF
- Karta’s Identification Documents
While my wife, [Wife’s Name], is not a coparcener, she is a member of the HUF. The account should be opened under the name of the HUF, with [Name of Karta] as the authorized signatory.
Please let us know if additional documentation or clarification is required. We look forward to your prompt assistance in this matter.
**Thank you.**
**Sincerely,**
[Your Name]
[Your Contact Information]
### **Summary**
- **Bank’s Objection:** Banks might refuse based on traditional views, but legally, the HUF can have an account with the Karta and members.
- **Documentation:** Provide complete HUF formation documents and clarify the roles of members.
- **Escalation:** If issues persist, escalate within the bank or seek guidance from regulatory bodies.
Consulting with a legal advisor can further help in addressing the bank’s objections and ensuring proper compliance.
### **1. Understanding HUF Structure**
- **Karta and Coparceners:**
- **Karta:** The head of the HUF, typically the senior-most male member.
- **Coparceners:** Generally include the Karta's descendants (sons, grandsons, etc.) and, in certain cases, may include daughters if the HUF is governed by modern legal principles or specific laws.
- **Wife’s Role:** In traditional Hindu law, a wife is not a coparcener. However, the wife can be a member of the HUF and benefit from the HUF’s assets. Recent legal amendments and interpretations have expanded the roles of female members in certain contexts, but traditionally, wives are not coparceners.
### **2. Bank’s Refusal and Legal Standing**
**Bank Guidelines and Legal Framework:**
- **Banks’ Policies:** Banks generally follow the guidelines set by regulatory authorities like the Reserve Bank of India (RBI) and also adhere to their internal policies for opening accounts.
- **HUF Account Rules:** According to RBI guidelines and general banking practices, an HUF account must have a Karta and coparceners. Traditional legal understanding suggests that a wife cannot be a coparcener but can be a member.
**Legal Position:**
- **Karta and Coparceners:** The bank's refusal may be based on traditional interpretations, but legally, the account can be opened with the Karta and coparceners as per the traditional HUF structure. The bank should recognize the Karta's position and the members of the HUF according to law.
### **3. Steps to Address the Bank’s Objection**
**1. Present Legal Documentation:**
- **HUF Formation Document:** Provide the bank with the documents showing the formation of the HUF, including the PAN card, HUF deed, and any other relevant legal documents.
- **Identification of Karta:** Show proof that the Karta is recognized legally and is the head of the HUF.
**2. Clarify the Role of the Wife:**
- **Member Status:** Explain that while the wife may not be a coparcener, she is a member of the HUF, and the account should be opened in the name of the HUF, with the Karta as the authorized signatory.
**3. Reference Banking and Legal Guidelines:**
- **RBI Guidelines:** Reference RBI guidelines related to the opening of HUF accounts. These guidelines typically do not specify the exact roles of coparceners but focus on the HUF structure and Karta’s authority.
- **Legal Precedents:** If necessary, refer to legal precedents or consult with a legal professional for guidance on handling the bank’s objections.
**4. Escalate if Necessary:**
- **Bank’s Grievance Redressal:** If the bank persists in its refusal, escalate the matter to the bank’s grievance redressal mechanism or higher management.
- **Regulatory Authorities:** In case of persistent issues, consider approaching regulatory authorities or the Banking Ombudsman for resolution.
### **4. Model Application for Account Opening**
Here’s a model approach to applying for an HUF account:
**Subject:** Request for Opening of HUF Account
**Dear [Bank Manager’s Name],**
I am writing to request the opening of a bank account for our HUF, [Name of HUF]. The Karta of the HUF is [Name of Karta], and the HUF has been duly constituted and recognized with a PAN card.
**Documents Attached:**
- HUF Formation Deed
- PAN Card of HUF
- Karta’s Identification Documents
While my wife, [Wife’s Name], is not a coparcener, she is a member of the HUF. The account should be opened under the name of the HUF, with [Name of Karta] as the authorized signatory.
Please let us know if additional documentation or clarification is required. We look forward to your prompt assistance in this matter.
**Thank you.**
**Sincerely,**
[Your Name]
[Your Contact Information]
### **Summary**
- **Bank’s Objection:** Banks might refuse based on traditional views, but legally, the HUF can have an account with the Karta and members.
- **Documentation:** Provide complete HUF formation documents and clarify the roles of members.
- **Escalation:** If issues persist, escalate within the bank or seek guidance from regulatory bodies.
Consulting with a legal advisor can further help in addressing the bank’s objections and ensuring proper compliance.
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